Friday, November 4, 2016

Farstad has entered into an agreement with Siem – E24

Farstad Shipping ASA announces that the company has entered into a letter of intent with a company in the Siem Industries group in connection with the financial restructuring of the company.

Siem, or a fund managed by Siem, will be hovedinvestor, type Farstad Shipping in a message.

Farstad-the share rose 9,85 per cent to 7.25 million on the news. Since it fell back, and at half past four 1,52 per cent up for the day to 6,70 million.

according to the non-binding memorandum of understanding continues Farstad Shipping and Siem discussions with key stakeholders related to the Farstad group, in order to attempt to stack on the legs a “rescue package” for the continued operation of Farstad Shipping.

This is clearly positive for Farstad and Ålesund, says analysis supervisor Karl-Johan Molnes in Norne Securities to E24.

Farstad was earlier in the autumn, agree with the creditors about a deferral of the nedbetalingene of debt up to 10. november, based on certain conditions.

Røkke-interest

It is previously known that Kjell Inge Røkke through Aker asa and Solstad, has been among the Farstads freer. This in competition with among others Kristian Siem and the John Fredriksen, according to the imf.

however, It should have been the controversy around mr Røkke’s role between the company’s financial advisors and creditors.

Not least, there is also a geographical dimension in the game about supplybransjen. Skudeneshavn-based Solstad, with mr Røkke’s Aker in the back, have in the past devoured REM Offshore from Fosnavåg.

This has created uncertainty around the maritime cluster in Sunnmøre.

Earlier this week underlined Garantiinstituttet for eksportkreditt (GIEK) the importance of preserving the cluster towards Sunnmørsposten. Now think Molnes in the Norne that the current agreement can ensure future activity in Ålesundsområdet.

– Now it seems that Farstad will continue as a publicly traded company with Siem as an investor, ” says Molnes.

Have a billion

Kristian Siem has, through cooperation with hedgefondet Elliott Management, provided two billion that will be used for the restructuring of the crisis-hit supplybransjen.

– If we manage to collaborate and make a really big device, the device leads the world. It means that each of us is a participant with a smaller percentage, but it is a valuable share in a large company, ” said Siem when this was known.

the Market for offshoreskip has long been very challenging. This is due to the oljeprisfallet and subsequent falling activity and demand, coupled with considerable overcapacity.

The above has led to an avalanche of restructuring. Previously we have Solstad got Aker in the back and then devoured by REM Offshore, and it has been or is processes in companies such as DOF, Olympic Shipping, Havilah, and Siem Offshore.

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