Viking Supply Ships

Share Issue/Capital Change • Jan 6, 2017

Viking Supply Ships AB completes financial restructuring with share issue with payment against set-off

Viking Supply Ships AB completes financial restructuring with share issue with payment against set-off

This press release may not be disclosed, published or distributed, directly or

indirectly in or to the USA, Australia, Japan, Canada or any other jurisdiction

where such measure entirely or partially is subject to legal restrictions.

Subscription and allotment have been made in the previously announced share

issue with payment against set-off for the holders of debt certificates in

Viking Supply Ships A/S bond loan 2012/2017. Viking Supply Ships A/S is a wholly

owned subsidiary of Viking Supply Ships AB ("Viking Supply Ships" or "the

Company") and the Company has assumed the subsidiary's debt obligation towards

the holders of debt certificates before the execution of the set-off issue.

Through the share issue with payment against set-off, the share capital will

increase by SEK 37,691,709 and the number of shares will increase by 37,691,709

B-shares, when the share issue has been registered with the Swedish Companies

Registration Office ("SCRO"). The new shares are expected to be registered with

the SCRO on or about 9 January 2017, and are expected to start trading on Nasdaq

Stockholm on or about 10 January 2017.

All of the share issues that form part of the Company's financial restructuring

have now been completed and comprises of the following:

· The rights issue, where the final outcome was announced through a press

release on 22 December 2016.

· Two share issues with payment against set-off to Viking Invest AS and Odin

Viking SPV AS, respectively, where the outcome was announced through a press

release on 20 December 2016.

· A directed share issue to Odin Viking SPV AS, in which subscription was made

on 19 December 2016.

· A share issue with payment against set-off to Viking Invest AS for the

guarantee fee for the guarantee undertaking in the rights issue in which

subscription was made on 21 December 2016.

· A share issue with payment against set-off to the holders of debt

certificates in Viking Supply Ships A/S bond loan 2012/2017.

Following these equity issues, the share capital of the Company increases with

SEK 232,148,642 from SEK 177,444,318 to SEK 409,592,960, and the number of

shares increases with 9,049,402 new A-shares and 223,099,240 new B-shares, from

177,444,318 shares to in total 409,592,960 shares when all above mentioned share

issues have been registered with the SCRO.

Through the now completed share issues, the Company's largest shareholder,

Kistefos AS ("Kistefos") increases its holdings in the Company to in total

12,892,783 A-shares and 295,526,353 B-shares equivalent to approximately 62.3

percent of the total number of A-shares and 76.0 percent of the total number of

B-shares in the Company, corresponding to in total approximately 75.3 percent of

the total number of shares in the Company and 71.2 percent of the votes in the

Company  after completion of the share issues. The decrease of Kistefos'

holdings in comparison with the holdings announced through the press release on

22 December 2016 is caused by the dilution for Kistefos resulting from the now

completed share issue with payment against set-off for the holders of debt

certificates in Viking Supply Ships A/S bond loan 2012/2017. The Company is of

the opinion that this interim reporting could be misinterpreted by the market,

but received advice from our legal advisor that reporting of the correct and

final shareholding of Kistefos' shareholding after completion of all share

issues would be non-compliant with relevant laws and regulatory codes of the

Stockholm Stock Exchange. As such, incremental reporting was required to fulfil

regulatory requirements due to the various share issues being registered at

different points of time and was communicated to the market upon recommendation

by the company's legal advisors.

Financial and legal advisors

Swedbank Corporate Finance is acting as financial adviser and Mannheimer

Swartling Advokatbyrå is acting as legal advisor in conjunction with the share

issues.

Investor relations

Bengt A. Rem, Interim CEO, tel. +47 94 01 71 71, e-mail bengt.rem@kistefos.no

Morten G. Aggvin, IR & Treasury Director, tel. +47 41 04 71 25, e-mail

mga@vikingsupply.com

Important information

The information in this press release does not contain or constitute an offer to

acquire, subscribe or otherwise trade in shares, subscription rights or other

securities in Viking Supply Ships AB.

This press release may not be published or distributed, directly or indirectly

in or into the United States, Australia, Japan, Canada or any other jurisdiction

where such action is wholly or partially subject to legal restrictions or where

such action would require additional prospectuses, registrations or other

actions in addition to what follows from Swedish law. Nor may the information in

this press release be forwarded, reproduced or disclosed in such a manner that

contravenes such restrictions or would require such requirements. Failure to

comply with this instruction may result in a violation of applicable securities

laws.

No subscription rights, BTAs (interim shares) or new shares will be registered

under the United States Securities Act of 1933 ("Securities Act") or securities

legislation in any other state or other jurisdiction in the United States and

may not be offered, subscribed, sold or transferred, directly or indirectly

within the United States, other than pursuant to an exemption from the

registration requirements of the Securities Act and in accordance with

securities laws in relevant state or other jurisdiction in the United States.

This press release may contain forward-looking statements which reflect Viking

Supply Ship's current view on future events and financial and operational

development. Words such as "intend", "expect", "anticipate", "may", "believe",

"plan", "estimate" and other expressions which imply indications or predictions

of future development or trends, and which are not based on historical facts,

are intended to identify forward-looking statements. Forward-looking statements

inherently involve both known and unknown risks and uncertainties because they

depend on future events and circumstances. Forward-looking statements do not

guarantee future results or development and the real outcome could differ

materially from the forward-looking statements.

Viking Supply Ships AB is the parent company of a Swedish shipping group with

its main office in Gothenburg, Sweden. The Group conducts its business in four

segments: Anchor Handling Tug Supply ships (AHTS), Platform Supply Vessels

(PSV), Services and Ship Management. The business is focused within offshore and

ice-breaking primarily in Arctic and subarctic areas. The Group has

approximately 500 employees and its revenue for 2015 amounted to MSEK 1,114. The

Company's series B share is listed at Nasdaq Stockholm, Small Cap segment.

www.vikingsupply.com.

This information is information that Viking Supply Ships AB is obliged to make

public pursuant to the EU Market Abuse Regulation. The information was submitted

for publication, through the agency of the contact person set out above, at

16:00 p.m. CET on 6 January 2017.