Aker Solutions’ businesses transferred to Jacobs

Aker Solutions has entered into a share purchase agreement (SPA) whereby it has agreed to transfer operations within its Process and Construction business area to Jacobs Engineering Group Inc. (Jacobs). The transfer does not include the US EPC centre in Houston, and the Union Construction business located in the US and Canada, which will all be part of the new Aker Contractors company. The transaction will allow the Process and Construction businesses included in the transfer to continue to grow under the new ownership. Aker Solutions will further concentrate its strategic efforts on its core oil and gas business.

The transaction value is estimated to be approximately NOK 5.5 billion (US$ 913 million), subject to closing adjustments. The consideration will be settled in cash at completion. Completion of the transaction will be subject to relevant merger control clearances. The parties expect to complete the transaction during Q1 2011.

For Aker Solutions, the transaction is expected to have a positive net cash effect of approximately NOK 3.8 billion (US$ 634 million), and a cash to treasury effect of approximately NOK 4.2 billion (US$ 701 million). Net gain for Aker Solutions compared to book value of the businesses is estimated to be a total of NOK 2.4 billion (US$ 400 million). Aker Solutions will continue to operate the Process and Construction business area operations included under the SPA until the transaction has been completed.

Published on 22/12/2010

 
 

Write your own comments

*
*
*

Recommend magazines

  Oilfield Technology