Agreement to sell shares in Normand Oceanic AS

18.10.2017 08:00

Solstad Farstad ASA ("SOFF") has agreed to sell its 50% of the shares in the 50/50 owned joint venture company Normand Oceanic AS ("JV) to Subsea 7 Normand Oceanic Holding AS ("Subsea 7"). Normand Oceanic AS is the vessel owning entity for the large construction vessel "Normand Oceanic". Following this transaction, Subsea 7 will own 100% of the shares in JV, and will assume all rights and obligations entered into by the JV. For SOFF, the transaction releases the Parent Company Guarantee given for 50% of the debt financing in JV. Given the difficult market conditions, SOFF's shareholding in JV was not expected to generate any dividends for the foreseeable future. 

The vessel is employed under a long term contract for operations in Mexico, and SOFF will remain ship manager for the vessel at least until end of this contract. 
"We have found a solution to the benefit of both JV partners. Subsea 7 has been a long term partner and client, and we look forward to continue this important relationship" says CEO Lars Peder Solstad in a comment. 
The sale of shares has no cash effect for SOFF, but will give a book loss of approx. NOK 144 mill.

Lars Peder Solstad, CEO at +47 913 18 585 or 
Anders Hall Jomaas, CFO at +47 400 42 918

Skudeneshavn, 18 October 2017
Solstad Farstad ASA

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)