Philly Shipyard — M&A Activity 2015

Sep 22, 2015

Aker Philadelphia Shipyard Agrees to Sell its Interest in Product Tanker Joint Venture to Marathon Petroleum

Aker Philadelphia Shipyard Agrees to Sell its Interest in Product Tanker Joint Venture to Marathon Petroleum

Aker Philadelphia Shipyard ASA (OSLO: AKPS) announced today that its wholly-

owned U.S. subsidiary, Aker Philadelphia Shipyard, Inc. (APSI), has entered into

definitive agreements with a subsidiary of Marathon Petroleum Corporation (MPC)

for the buy-out of APSI's interest in its joint venture with Crowley Maritime

Corporation (Crowley) related to the operation and chartering of four 50,000 dwt

product tankers. The transaction is based on an enterprise value of $150 million

per vessel.

The buy-out of APSI's interest in the APSI-Crowley joint venture with respect to

each vessel will occur at its delivery from APSI. The deliveries of all four

vessels are expected to occur from Q3 2015 to Q3 2016. APSI expects to recognize

a pre-tax gain of approximately $10 million per vessel from the transaction.

APSI will make an investment in the vessels during their construction, but will

no longer maintain the previously planned long-term investment in the vessels

post-delivery, which was expected to be approximately $110 million in the

aggregate.

"This transaction is an important part of AKPS's plan to divest its shipping

investments and realize the value created for shareholders," remarked Kristian

Rokke, Chairman of AKPS. "We are proud of what we have accomplished together

with Crowley under the joint-venture and look forward to serving both Crowley

and Marathon Petroleum as shipbuilders into the future."

All four of the vessels subject to the transaction are under construction.  APSI

has also begun construction of the first two of four additional 50,000 dwt

tankers for a subsidiary of Kinder Morgan, Inc., which are planned to be

delivered between November 2016 and November 2017. The shipyard also has

contracts for two 3,600 TEU containerships for Matson Navigation Company, Inc.,

which are planned to be delivered in 2018. On July 16, 2015, the company

announced that it intends to change its name to Philly Shipyard by the end of

the year, pending shareholder approval. For more information on the shipyard,

please visit www.akerphiladelphia.com.

About Aker Philadelphia Shipyard:

Aker Philadelphia Shipyard is a leading U.S. commercial shipyard constructing

vessels for operation in the Jones Act market.  It possesses a state-of-the-art

shipbuilding facility and has earned a reputation as the preferred provider of

oceangoing merchant vessels with a track record of delivering quality ships.

Aker Philadelphia Shipyard is listed on the Oslo Stock Exchange and is majority-

owned by Converto Capital Fund, which in turn is majority-owned by Aker ASA.

Aker is a Norwegian industrial investment company that creates value through

active ownership.  Aker's investment portfolio is concentrated on key Norwegian

industries that are international in scope: oil and gas, fisheries and

biotechnology, and marine assets. Aker's industrial holdings comprise ownership

interests in Aker Solutions, Kvaerner, Det norske oljeselskap, Aker BioMarine,

Ocean Yield, Havfisk and Akastor.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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