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Strategic Merger: Aker Horizons and Aker ASA Join Forces

Aker ASA and Aker Horizons ASA have officially announced a merger that represents a pivotal moment for both companies as they navigate the complexities of the current market environment. The merger, which is set to finalize in the third quarter of 2025, will be executed through the combination of Aker Horizons' subsidiary, Aker Horizons Holding AS, and Aker ASA's subsidiary, Aker MergerCo. This strategic move aims to optimize resource allocation and spur growth amidst significant market challenges faced by Aker Horizons.

Details of the Merger

Under the terms of the merger, shareholders of Aker Horizons (excluding Aker Capital) will receive a payment comprising of NOK 0.267963 in cash and 0.001898 shares in Aker ASA for each share they currently hold in Aker Horizons. This exchange ratio has been derived from the 30-day volume-weighted average share prices of both companies. Once the merger is complete, it is expected to reposition Aker Horizons, allowing it to enhance its existing investment portfolio. A noteworthy aspect is that the merger will also transpire in conjunction with a dividend distribution of shares to Aker Horizons shareholders before the merger's completion.

Financial Implications and Debt Management

As part of a wider financial strategy, Aker Horizons has declared its intention to redeem its outstanding NOK 2.5 billion Green Bond ahead of schedule. This bond buyback will be executed at a price above par, with the redemption anticipated to conclude by the end of May 2025. The decision is part of a broader initiative to streamline debt and manage cash interest costs more effectively, allowing the company to navigate financial obligations without diluting shareholder value.

Market Context and Strategic Adjustments

The move comes at a time when the green energy sector is facing significant volatility, affecting the capital-raising capabilities of companies like Aker Horizons. The board of directors has conducted a strategic review and concluded that the merger offers a compelling alternative to address these challenges. With debts maturing soon, the alignment offers potential stability and renewed focus for Aker Horizons as part of a larger ecosystem.

Leadership Insights

Øyvind Eriksen, President and CEO of Aker ASA, has expressed confidence in the long-term industrial potential of the merger. He noted that despite previous losses, strategic adjustments and enhanced capital deployment are crucial for rebuilding shareholder value. Alongside, Lone Fønss Schrøder, an independent director at Aker Horizons, emphasized the transaction's alignment with the long-term interests of all stakeholders, marking a necessary transition in response to evolving market dynamics.

Kristian Røkke, Chairman of the board at Aker Horizons, highlighted the original vision of advancing the transition to a net-zero economy. He reiterated that while the environment for large-scale green investments has shifted, the intrinsic value of their portfolio remains promising.

Looking Ahead

Post-merger, Aker ASA will steer the management of Aker Horizons' assets, with a focus on enhancing investments in renewable energy and carbon capture technologies. The company will particularly emphasize projects in South Africa, Australia, and the development of an AI Factory initiative in Narvik—a significant pivot towards tapping emerging technologies in light of changing demands.

In conclusion, the merger between Aker Horizons and Aker ASA marks a transformative step that accommodates the evolving landscape of the green energy sector while safeguarding shareholder interests. The consolidation promises not only to strengthen financial resilience but also to facilitate more targeted capital allocation for future initiatives that align with sustainability and corporate growth.