By the OGJ Online Staff
LONDON, Nov. 28 -- The intervention of Norway's Aker Maritime AS has thwarted Yukos Oil Co.'s attempt to take over the ailing Anglo-Norwegian shipbuilding and oil services company Kværner AS.
Aker Maritime has reached an agreement with Kværner that will result in new equity for Kværner through a stock issue and a merger of Aker Maritime's core businesses with Kværner Oil & Gas.
Aker Maritime is Kværner 's largest shareholder, but Kværner has opposed a link with Aker Maritime for months. It was forced to concede when it became clear that Yukos lacked support for its $830 million rescue plan.
Yukos, Russia's second largest oil company, has an aggressive expansion program. It supported the Aker Maritime bid after it became apparent during a special shareholders meeting on Thursday that Yukos lacked the necessary two-thirds support for its rescue package.
Negotiations with Kværner 's lending syndicates concerning the amended loan conditions are continuing. A proposed solution is expected in 2 days.
Kværner and Aker Maritime asked the Oslo Stock Exchange to suspend trading of Kværner shares until a more detailed proposal has been presented. Kværner stock rose 40% when news of the Aker Maritime package emerged.
The 148-year-old Kværner group has two core business areas: engineering and construction, and oil and gas. Other activities include shipbuilding and pulping equipment. The group has revenues of more than $6 billion/year, with 34,000 employees in 35 countries.
Within Norway the outcome was described as a victory for Norwegian multimillionaire Aker Maritime Chairman Kjell Inge Roekke.
Yukos's main interest was always Kværner Hydrocarbons, the London-based subsidiary of the company. Yukos accounts for 38% of all orders handled by this subsidiary, which is participating in the development of Yukos' part of Priobskoye oil field in western Siberia.
Yukos formed an alliance with Kværner last year to develop Priobskoye, which has reserves of 4.1 billion boe. Yukos officials estimate that Priobskoye will provide 34% of their oil in 2005, vs. 10% now.
The Aker Maritime agreement calls for a 2 billion kroner private stock placement priced at 4-8 kroner/share, and a 1.5 billion kroner rights offer in January 2002. Aker Maritime has pledged to buy up to 500 million kroner worth of shares in the private placement. Aker Maritime itself is valued at 3.6 billion kroner, including 800 million kroner in debt.
After the completion of the deal, Aker Maritime will own 50% of Kværner. The plan includes a 10-year moratorium on 4.5 billion kroner of debt, and the debt will be interest-free for 5 years. The banks can't convert the debt to equity. In addition, 4 billion kroner of debt will be postponed 3 years.
The Oslo Stock Exchange said main creditor banks support the rescue plan.