Vard Ups Stake in Brazilian Shipyard

Vard Holdings Norwegian shipbuilder and ship designer Vard Holdings Limited has increased its shareholdings in the Brazilian shipyard Vard Promar from 50.5 percent to 95.15 percent. The increase in ownership results from a capital increase of BRL 532 million (USD 166.8 million) in Promar that is entirely taken up by Vard Group AS through the conversion of shareholder loans extended to Promar between 2015 and 2016 into newly issued equity, with no cash consideration. The conversion ratio of the shareholder loans into new shares was based on valuations performed by the company and negotiated on a willing-buyer, willing-seller basis, Vard said. Shareholder loans with a nominal value of BRL 532 million were converted into equity. Vard added that the transaction has a limited impact on the earnings per share and net tangible assets per share for the 2016 financial year.