Aker — M&A Activity 2018

Apr 16, 2018

Aker ASA: Aker to establish a new property development company with partners

Aker ASA: Aker to establish a new property development company with partners

Aker ASA's wholly owned subsidiary Aker Capital AS ("Aker") has entered into an

agreement with Geveran Trading Co. Ltd (a company indirectly controlled by

trusts established by John Fredriksen for the benefit of his immediate family)

("Geveran") and Joh Johannson Eiendom AS to establish a residential real estate

development company, FP Bolig Holding AS ("FP Bolig").

"This is a new strategic step for Aker's real estate development. We are

strengthening our real estate initiatives by entering into joint ownership with

two prominent investment companies", said Øyvind Eriksen, President & CEO of

Aker ASA.

Under the agreement, FP Bolig will acquire three real estate land areas at

Fornebu from Aker. Over a ten-year period, it is expected that FP Bolig will

develop approximately 80,000 square meters of residential properties,

corresponding to around 1,000 apartments. Two of the projects will be owned and

developed by a 50-50 joint venture between OBOS and FP Bolig, while the third

project will be fully owned by FP Bolig.

Aker and Joh Johannson Eiendom AS will own 37.55 per cent each of FP Bolig,

while Geveran will own the remaining 24.9 per cent.

"The partnership with Joh Johannson Eiendom, Geveran and OBOS gives us the

opportunity to further develop Fornebu and strengthens our financial capacity to

evaluate new opportunities", said Eriksen.

As part of the transaction, Aker's assets have been valued at NOK 828 million on

a debt- and cash-free basis, which implies an equity value of approximately NOK

580 million. The transaction is expected to release approximately NOK 360

million in cash for Aker and will realize an accounting gain of approximately

NOK 190 million to be booked in the second quarter of 2018.

Upon completion of the transaction, Aker's real estate assets will primarily

comprise its 37.55 per cent ownership in FP Bolig, other commercial properties

and land areas at Fornebu and in Aberdeen, and a portfolio of late-stage

residential projects in Norway.

Since its establishment in 2012, Aker's real estate company has developed and

sold properties with a total market value of approximately NOK 7 billion.

Pareto Securities AS acted as financial advisor to FP Bolig.

ENDS

For further information, please contact:

Investors:

Per Kristian Reppe, Investment Manager & Head of Investor Relations

Phone:  +47 24 13 00 67

Mobile: +47 900 33 203

Media:

Atle Kigen, Head of Corporate Communications

Phone:  +47 24 13 00 08

Mobile: +47 907 84 878

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.