STX buys large chunk of Aker Yards

STX buys large chunk of Aker Yards

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An affiliate of South Korea’s STX Corp. has paid about $800 million for a 39.2 percent stake in Norway’s Aker Yards ASA, Europe’s largest shipbuilder.
   Aker has 20,000 employees with 18 yards in Brazil, Finland, France, Germany, Norway, Romania, Vietnam and the Ukraine. Its three business areas are cruise and ferries, merchant vessels, and offshore and specialized vessels.
   The company generated revenue of 25.9 billion Norwegian Krone ($4.22 billion) in 2006, but has lowered its earnings forecasts for 2007 due to challenges related to ferry projects at three of its Finnish yards.
   Shares in the Oslo-based company soared after news that Rambera AS — owned by STX Shipbuilding Co. Ltd. and STX Engine Co. Ltd and undergoing a name change to STX Norway AS — acquired 44.56 million shares in Aker at a price of NKr97 ($17.96) each, 38.5 percent higher than Monday’s closing price on the Oslo Stock Exchange.
   STX said it intends to remain as a significant minority shareholder in Aker, which it said would benefit from the support of a long-term industrial partner.
   'Aker Yards is an accomplished and recognized leader in the shipbuilding business, and our strategic stake in the company represents a solid opportunity to gain valuable exposure to attractive industry segments,' said Duk-Soo Kang, chairman of STX.
   Aker’s board of directors responded by saying it is reviewing the company’s position in light of the ownership change.
   “We will now gather all relevant information in order to review the strategic alternatives available in order to maximize the value of Aker Yards. The board’s main task is to consider the interest of all shareholders,” said chairman Svein Sivertsen.