The Røkke Saga / News / The Foreigner

The Røkke Saga. Kjell Inge Røkke and Jens Stoltenberg at loggerheads about allegedly doubtful financial deal. The deal involves Aker Solutions and the government, who is part owner of the company. Aker Solutions is part of a group of companies within Aker ASA. The fracas started on 02 April when it became known that Aker Solutions bought Aker ASA’s 46 percent stake in Aker Oilfield Services, 50 percent in Aker DOF Deepwater (formerly known as Aker DOF Supply), 33 percent in Odim – a technology company listed on the stock exchange – and 100 percent in the Midsund Bruk production company. Røkke already owns all of these companies. Both Prime-minister Stoltenberg and Røkke were present at a day of events hosted Aker, this being the same day that the deal was announced. Aker Solutions paid Aker ASA a total of 1,391 million kroner for the block of shares, something which made Aker ASA a profit of 478 million kroner in the second quarter of 2009. By taking over these companies, Aker ASA also received reimbursement for approximately 207 million kroner in shareholder loans from Aker Solutions. A summary of the play

aker, solutions, financial, government, stoltenberg, brustad, deal, shares



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The Røkke Saga

Published on Tuesday, 14th April, 2009 at 23:17 under the news category, by Michael Sandelson   .
Last Updated on 16th April 2009 at 23:10.

Kjell Inge Røkke and Jens Stoltenberg at loggerheads about allegedly doubtful financial deal.

Logo Aker Solutions
Logo Aker Solutions
Photo: Copyright Aker Solutions 2003-2008


The bid

The deal involves Aker Solutions and the government, who is part owner of the company. Aker Solutions is part of a group of companies within Aker ASA. The fracas started on 02 April when it became known that Aker Solutions bought Aker ASA’s 46 percent stake in Aker Oilfield Services, 50 percent in Aker DOF Deepwater (formerly known as Aker DOF Supply), 33 percent in Odim – a technology company listed on the stock exchange – and 100 percent in the Midsund Bruk production company. Røkke already owns all of these companies. Both Prime-minister Stoltenberg and Røkke were present at a day of events hosted Aker, this being the same day that the deal was announced.

Aker Solutions paid Aker ASA a total of 1,391 million kroner for the block of shares, something which made Aker ASA a profit of 478 million kroner in the second quarter of 2009. By taking over these companies, Aker ASA also received reimbursement for approximately 207 million kroner in shareholder loans from Aker Solutions.

A summary of the play

03 April: Sylvia Brustad, the Minister of Trade and Industry asks Aker Holding AS – a holding company that owns 40.1 percent of Aker Solutions, and that manages the ownership of the four major owners in the company (Aker ASA, the Norwegian Ministry of Trade and Industry, SAAB, and Investor AB (Wallenberg family)) – to carry out an internal investigation of the transactions. The sale is approved by Berit Kjøll, the State’s representative on Aker Holding’s board, three people and three conflicts of interest later.

05 April: Brustad announces her own independent financial and legal investigation.

06 April: VG reports a member of one of the right-wing opposition parties (Høyre) comparing the deal as resembling political corruption. Dagens Næringsliv (DN.no) reveals that Røkke sold the controversial Aker companies to a subsidiary company owned by Aker Solutions. In this way, Røkke avoided the sale requiring government approval. The Swedish Wallenberg family criticizes how the process was handled. They own a ten percent stake in Aker Holding.

07 April: VG reports central government sources as confirming that Brustad is considering having the entire transaction annulled.

08 April: Brustad announces that Pareto Securities will be responsible for the financial investigation and Eva Joly, a Norwegian crusader against corruption, thinks that the police should investigate the deal. Later in the day, Brustad allegedly gives Røkke something that resembles an ultimatum to either annul the sale, or take the matter up under an extraordinary general meeting of Aker Solutions. The war of words begins.

09 April: The Wallenberg family from Sweden pledges their support for Brustad.

10 April: Kjøll tells DN.no that she only understood that something was very wrong after she heard how the market reacted to Røkke’s deal. Røkke apologizes to Stoltenberg that he was present on the same day that the deal was made public in an open letter.

13 April: Stoltenberg supports Brustad’s “ultimatum”. Dagbladet.no writes that Aker Solutions is considering paying for the shares it has bought in cash instead of raising a loan. By doing this, they can avoid an extraordinary general meeting.

14 April: Dagens Næringsliv estimates that Pareto Securities has been paid approximately a quarter of a billion kroner in fees in the past year, as advisors for both Aker and DOF. A member of the Aker Solutions board resigns in protest both because of how the deal was handled, and which decisions were made. Aker Solutions agrees to an extraordinary general meeting.

The saga continues.



Published on Tuesday, 14th April, 2009 at 23:17 under the news category, by Michael Sandelson   .
Last updated on 16th April 2009 at 23:10.

This post has the following tags: aker, solutions, financial, government, stoltenberg, brustad, deal, shares.





  
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