News

Oslo, Saturday, January 1, 2000
Stock Exchange Notification
BOARD APPROVAL ACQUISITION OF SCANROPE

 On 19 May Blom announced that an agreement had been entered into for the purchase of 100 per cent of the shares in Scanrope Holding AS for NOK 170 million. ScanRope is an established company with modern production lines for the production of umbilicals (electrical control cables) and advanced anchoring systems, both designed for great sea depths and for rigs and floating production solutions for oil and gas.

Blom ASA`s Board of Directors resolved at a meeting on 14th June 2006 to approve the acquisition of Scanrope Holding AS. The shares in Scanrope Holding AS will be settled in cash (50 %) and through a private placement in Blom ASA (50%) with the selling shareholders of Scanrope Holding AS.

The number of shares to be allotted is based on an average end price for the Blom share for the period 19th May to 14th June 2006. The average end price was NOK 22.39 and the number of shares in the private placement will be 3 795 640, which is 11.52 % of the shares in Blom ASA. The cash settlement will be financed through a short-term loan of NOK 75 million from SEB and own financing.

The settlement and takeover will take place during the first week of July after the prospectus that is being prepared in connection with the transaction has been approved by the Oslo Stock Exchange. Scanrope`s business will therefore be consolidated with Blom ASA with effect from 1st July 2006.

The 2006 turnover in Scanrope is expected to be NOK 360 million with an EBITDA margin of NOK 28 million. The 2006 turnover is expected to increase to upwards of NOK 450 million. Blom is extremely happy with developments at Scanrope and the company has been awarded new orders for NOK 145 million since the agreement was entered into on 19th May. This supports Blom`s expectations of increased demand for Scanrope`s products.

For further details please call the CEO, Mr. Dirk Blaauw, on tel. +47 22131923.

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