September 20, 2016 / 6:21 AM / 2 years ago

BRIEF-Norway's Akastor in joint venture with Japan's Mitsui

Sept 20 (Reuters) - Akastor Asa

* To create a joint venture with 50/50 ownership between its subsidiary AKOFS Offshore as and Mitsui & Co Ltd

* The joint venture will acquire both the Skandi Santos hull from DOF Subsea Rederi AS and the Skandi Santos topside from AKOFS

* Joint venture will subsequently enter into a lease agreement with akofs corresponding to remaining contract duration between akofs and Petrobras

* Dof subsea will continue to provide rov and marine services onboard vessel as part of subsea equipment support vessel contract with Petrobras

* Upon closing of transaction, akofs will realize a cash gain of usd 66 million, net of investments in joint venture

* Transaction will result in an accounting gain of approximately usd 19 million for akastor, corresponding to half of total sales-gain of usd 38 million

* Accounting gain is expected to be booked at closing in q4 2016

* The annual bareboat charter and related costs will increase by USD 8.5 million per year over the remaining contract period. The contract with Petrobras for the operations in Brazil will remain in a 100% owned subsidiary of AKOFS and will continue to generate positive results over the contract period, also when considering the increased bareboat charter rate

* Says pleased to announce this partnership with Mitsui and excited about additional joint business opportunities currently being explored

* Transaction will increase Akastor’s financial flexibility, while laying the groundwork for longer term value creation together with Mitsui

* Arctic securities is acting as financial advisor in connection with transaction

* The agreement is subject to Petrobras consent, bank approvals and certain other conditions, which are expected to occur during Q4 2016 Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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