Aker to sell entire stake in Aker Yards

Shares in Europe’s largest shipbuilder, Aker Yards ASA, plunged nearly 12% on key owner Aker ASA’s announcement that it was selling its entire 40.1% stake.

Aker Yards was created in 2004 as a subsidiary when the Norwegian groups Aker RGI and Kvaerner ASA merged to become the Aker ASA concern. The shipbuilding unit has about 20,000 employees and 17 shipyards in Brazil, Finland, France, Germany, Norway, Romania and Ukraine. “Aker’s proactive ownership over a number of years has contributed to profitable growth and a steady strategic course for Aker Yards. The shipyard group is now world-leading,” said Leif-Arne Langoey, chairman and chief executive of Aker.

Langoey said Aker’s business model is to develop high-quality companies and seek new business opportunities. He said the proceeds and staff capacity freed up by the sale would be use to build up other subsidiaries and invest in new areas. “Although we develop companies as if they are to be permanently held, this approach does not prevent us from selling when we believe other owners can better advance a company’s development,” said Langoey, who is also chairman of the Aker Kvaerner board.

The shipyard group has been expanding, and reports a record backlog of orders. In February, it reported a 27% increase in net profit for the fourth quarter, of 486 million kroner ($79.9 million) compared to a year earlier. Aker Yards President and Chief Executive Karl Erik Kjelstad said, “The share divestiture marks the end of an era … it also heralds the beginning of a new phase for Aker Yards.” He said the shipyard would actively participate in the sales process, being handled by J.P. Morgan and SEB Enskilda finance houses.

Oslo-based Aker ASA employs about 55,000 people in 45 countries, and has subsidiaries involved in oil and industry services, shipping, seafood and offshore oil production.