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.
Contacts:
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
www.solstadfarstad.com
This information is subject of the disclosure requirements
acc. to ยง5-12 vphl (Norwegian Securities Trading Act)