Aker Carbon Capture's Strategic Move to Enhance Shareholder Value

Aker Carbon Capture's Strategic Stake Sale to Aker

Aker Carbon Capture ASA (Aker Carbon Capture or ACC) and Aker ASA have recently made a significant decision regarding ownership interests in SLB Capturi. This marks a strategic move aimed at optimizing value for shareholders by paving the way for a major liquidity event. Through this transaction, Aker intends to buy ACC's 20 percent stake in SLB Capturi, which promises attractive returns for the investors involved.

Transaction Details and Benefits

The sale's valuation suggests a price of NOK 3.03 per share for Aker Carbon Capture, translating to approximately NOK 1.83 billion in total valuation. This evaluation presents a 15% premium compared to the previous day's closing price and a 19% increase based on the average price over the past month. Significant elements of the deal include:

Aker will acquire the ownership interest for a cash consideration of NOK 635 million through its subsidiary Aker Capital AS. This acquisition includes a guarantee to cover ACC's parent company guarantees and liabilities regarding SLB, which is expected to augment the available reserves in ACC.

Proposed Shareholder Dividend and Future Plans

Once the transaction is successfully completed, the ACC Board of Directors plans to propose a dividend payment of approximately NOK 1.7 billion to its shareholders. This equates to NOK 2.86 per share in Aker Carbon Capture stock. The anticipated payment will include around NOK 1.1 billion in existing cash along with the NOK 635 million gained from the transaction. An extraordinary general meeting is set to discuss these matters.

In addition to the dividend proposal, the Board of Directors aims to propose the liquidation of Aker Carbon Capture, distributing any remaining cash to shareholders. This liquidation plan is anticipated to be presented to shareholders later in the year.

Executive Insights on the Transaction

Chairman of Aker Carbon Capture, Karl Erik Kjelstad, emphasized the substantial benefits of this transaction. He stated that it provides shareholders with quicker access to capital—two years ahead of the original expectations—through a well-structured mix of cash distributions and dividends. This strategic decision is designed to benefit shareholders during a time of notable market volatility.

Similarly, Øyvind Eriksen, President and CEO of Aker ASA, highlighted the value delivered to shareholders through SLB Capturi, asserting that the deal unlocks more value in unpredictable market conditions. He expressed optimism regarding the continued collaboration with SLB for the future development of the venture.

Transaction Review and Advisor Support

The transaction underwent thorough examination by the Board of Directors of ACC, who consulted financial and legal advisors to ensure the best implementation strategy. As a result, the Board deemed the outlined transactions advisable for the benefit of the company’s future and its shareholders.

It’s recommended to stay updated through ACC’s official channels for pertinent announcements regarding this material transaction, considering the regulatory frameworks that govern public company agreements.

Frequently Asked Questions

What is the purpose of Aker Carbon Capture's sale of its ownership in SLB Capturi?

The sale is aimed at optimizing shareholder value through a major liquidity event.

What are the anticipated financial implications for Aker Carbon Capture shareholders?

Shareholders can expect a proposed dividend payment following the transaction completion, which may enhance their returns significantly.

When is the extraordinary general meeting scheduled to discuss these matters?

The meeting is expected to be called to discuss the transaction details and dividend proposals later in the year.

What support did Aker Carbon Capture receive for this transaction?

ACC was advised by financial experts at SEB and legal counsel from Wikborg Rein Advokatfirma AS to ensure successful transaction completion.

How does this transaction position Aker Carbon Capture for the future?

This strategic move is designed to provide shareholders with timely value realization while also preparing for the potential restructuring or liquidation of the company.

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