Aker and Alstom yards to join forces

Aker Yards and Alstom marine have announced their intention to join forces in shipbuilding and create together one of the world leaders in this industry focusing on high value added ships, especially cruise ships.

The parties plan to establish a new company consisting of the shipyards in Saint Nazaire and Lorient. Aker Yards would own 75% of this new company and Alstom would commit itself to keep the remaining 25% until 2010. Aker would pay EUR 50 million for the 75% stake and, depending on the financial performance, the remaining 25% would be sold to Aker for up to EUR 25 million in 2010. An estimated amount of EUR 350 million would be injected by Altom into the newly formed company. This amount would notably cover the anticipated increase in working capital requirement from the current negative situation to an average of EUR 100 millin for the new company.

The proposed transaction would be subject to a number of conditions, including finalization of the agreement between the parties , the effective setting-up of the new company, the requisite financing for the new company?s activities, the authorization of the European authorities, the information/consultation of the works councils, confirmatory due diligence and other relevant conditions. It is expected to be concluded by the end of March 206.

The transaction would be carried out as a ?sale of assets? from Chantiers de l?Atlantique to Aker Yards. The LNG tankers under construction at Saint Nazaire are not aprt of the transaction. The LNG vessels would be completed by the new company as a subcontractor to Alstom. Apart from the LMG vessels, the current order book consisting of four cruise ships would be included in the transaction.