Akastor ASA Strengthens Position in AKOFS Offshore
Akastor ASA (OSE: AKAST) has reached an agreement with Mitsui & Co., Ltd. for the acquisition of all Mitsui's interests in AKOFS Offshore AS. Following this transaction, Akastor will control a significant 75% of the shares in AKOFS Offshore, bolstering its foothold in the subsea well intervention and installation market.
Details of the Agreement
The agreed purchase price for Mitsui's share amounts to USD 22.5 million. This includes an initial payment of USD 15 million upon closing, with the remaining USD 7.5 million divided into two installments due in June and December of the following year. The deal will encompass all equities and shareholder loans held by Mitsui in AKOFS Offshore, as well as assuming Mitsui's guarantees associated with the financing of the AKOFS Santos vessel.
Strategic Rationale Behind the Acquisition
Karl Erik Kjelstad, CEO of Akastor, expressed gratitude towards Mitsui for their partnership since 2018. He emphasized that now is an opportune moment to increase their investment, citing the favorable dynamics in the subsea sector. Akastor aims to maintain a collaborative journey with Mitsui O.S.K. Lines, which retains a 25% share in AKOFS Offshore, through a new shareholders agreement aimed at aligning their interests.
Future Outlook for AKOFS Offshore
The completion of this transaction hinges on standard regulatory approvals, anticipated to finalize in early Q1 2025. Akastor intends to keep AKOFS Offshore classified as a joint venture, ensuring that it continues to be represented in their consolidated financial statements using the equity method.
Financial and Legal Guidance
For assistance navigating this complex transaction, Akastor has engaged Arctic Securities as its financial advisor and BA-HR law firm as a legal advisor, ensuring all aspects are managed professionally and efficiently.
About AKOFS Offshore
AKOFS Offshore specializes in vessel-based subsea well installation and intervention services tailored to the oil and gas sector. The company’s operational fleet includes three dedicated offshore vessels: the AKOFS Santos, Aker Wayfarer, and AKOFS Seafarer. The first two vessels are contracted for integration projects with Petrobras, while the AKOFS Seafarer services Equinor on the Norwegian Continental Shelf. By the end of the last fiscal year, the company employed 352 skilled personnel.
About Akastor ASA
Akastor ASA is an investment firm based in Norway, focused on the oil-services sector, holding a diverse portfolio of investments and industrial interests. The company's overarching goal is to promote active ownership and pursue long-term value creation from its investments.
Frequently Asked Questions
What is the impact of the Akastor and Mitsui deal?
This agreement strengthens Akastor's position in the subsea market, giving it majority control of AKOFS Offshore.
How much did Akastor pay for Mitsui's interests?
Akastor agreed to pay a total of USD 22.5 million for Mitsui's interests, with structured payments over two years.
What role does Arctic Securities play in this transaction?
Arctic Securities serves as the financial advisor for Akastor during this strategic acquisition, ensuring a smooth execution.
Will AKOFS Offshore change ownership structures?
AKOFS Offshore will remain a joint venture, but ownership shares will shift with Akastor acquiring a 75% stake.
What services does AKOFS Offshore provide?
AKOFS Offshore specializes in subsea well installation and intervention services using advanced offshore vessels.
