Akastor — M&A Activity 2016

Oct 27, 2016

Akastor ASA: Akastor agrees to sell Fjords Processing to National Oilwell Varco

Akastor ASA: Akastor agrees to sell Fjords Processing to National Oilwell Varco

Akastor ASA (OSE: AKA), an oil service investment company, has entered into a

definitive agreement to sell Fjords Processing ("Fjords") to National Oilwell

Varco  ("NOV") for a consideration of NOK 1,200 million on a debt- and cash-free

basis.

Fjords is a global leader in complete process support systems for gas, oil and

water, and has under Akastor's ownership, streamlined operations, expanded its

footprint in key regions, and produced record financial results.

"We are proud of what the Fjords organization has accomplished in recent years

with improved operational performance and expanded business opportunities," says

Kristian Røkke, CEO of Akastor. "Fjords is performing well and we are pleased to

be selling to NOV, which is committed to further growing the business globally."

"We are thankful for the support Akastor has given us over the past few years

which has put us in a position where we see exciting future opportunities for

our business. We look forward to the next part of our transformation journey

together with NOV, where we will be able to deliver a broader suite of products

and additional value for our customers," says Rune Fantoft, CEO of Fjords.

CEO of NOV, Clay Williams comments: "NOV is excited to acquire a high-quality,

market-leading business in Fjords.  We see significant potential in combining

the capabilities of Fjords technology with our existing NOV platform, which

includes complementary solutions and services, as well as a broad infrastructure

to enable market expansion and significant cost reductions.  The production and

process solutions that our combined businesses offer will enable operators to

continue to meet the increasing technical challenges our industry faces while

reducing their marginal cost per barrel."

The transaction will realize an accounting gain of approximately NOK 650 million

to Akastor, and will be recognized in the fourth quarter results. The

transaction is expected to release approximately NOK 1,150 million in cash for

Akastor.

The transaction is expected to be completed in Q4 2016, pending clearance from

Norwegian and Korean competition authorities.

For additional information please see the Appendix.

- END -

Media Contacts:

Akastor

Tore Langballe, Head of Communications

+47 907 77 841

tore.langballe@akastor.com

About Fjords Processing

Fjords Processing provides world-class wellstream processing technology, systems

and services to the upstream oil and gas industry. The company delivers market-

leading solutions for separation and treatment of oil and gas, based on

innovative technology and extensive competence accumulated over the last 40

years.

About Akastor

Akastor is a Norway-based oil services investment company with a portfolio of

industrial holdings and other investments. The company has a flexible mandate

for active ownership and long-term value creation.

About National Oilwell Varco

National Oilwell Varco is a worldwide leader in the design, manufacture and sale

of equipment and components used in oil and gas drilling and production

operations and the provision of oilfield services to the upstream oil and gas

industry.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.