Aibel receives NOK 600 million of new equity and resolves criminal charges

London, November 24, 2008

Following a court proceeding for Aibel Group Ltd. on November 21st in the United States District Court for the Southern District of Texas, Aibel Group Ltd. has received a capital injection of NOK 600 million from its owners. Aibel has been restructured into two separate entities, Aibel AS and Aibel Group Ltd., with separate management teams and board of directors.

Aibel Group Ltd. has pleaded guilty to two violations involving the U.S. FCPA after having reached a plea agreement with the United States Department of Justice, Fraud Section (“the DoJ”). The charges related to the 2002 to 2005 time period. In connection with Aibel Group Ltd.’s guilty plea to the two charges, the Court imposed a fine of USD 4.2 million and placed Aibel Group Ltd. on probation for two years.

After the guilty plea and imposition of the sentence, the Court terminated the previously executed Deferred Prosecution Agreement (“DPA”).

Aibel AS has been separated into a stand-alone legal entity with continued focus on the Norwegian market. Jan Skogseth will continue to be President and CEO of Aibel AS.

Aibel Group Ltd.’s Board of Directors has initiated a strategic review with the local senior management of Aibel Group Ltd.’s various international businesses.

Jo Lunder has been appointed Executive Chairman of both Aibel AS and Aibel Group Ltd.

“I am delighted to take on the responsibility as Executive Chairman of Aibel AS and Aibel Group Ltd. Aibel Group Ltd. has gone through a very difficult period with many commercial and legal challenges. The equity injection, restructuring and agreement with the DoJ to resolve the criminal charges provide an excellent platform for Aibel to now look ahead and focus on commercial issues. I am looking forward to working closely with Aibel’s employees, customers and suppliers in addressing the many opportunities and challenges ahead.” Jo Lunder, Executive Chairman, Aibel.

“The resolution with the DoJ and the capital injection have secured Aibel as a long term service provider to its customers and puts the company in an excellent position to support its key constituencies in Norway. Aibel has a promising future and we are delighted that Jo Lunder has taken on the role as Executive Chairman.” Dag W.R. Strømme, Partner, Herkules Capital.

“This is a very positive day for Aibel and its employees. We have been through a difficult period, but have now resolved the criminal charges, restructured the company and injected new equity which put us in a significantly improved position. I am glad to say that we remain committed to having a strong compliance culture, talented employees and owners such as Herkules Capital and Ferd AS with their long term positive view.” Momir Repaja, Group Union Representative, Aibel.

For further enquiries please contact:

Jo Lunder
Telephone: +47 90 08 08 42

Jan Skogseth
President & CEO
Telephone: +47 91 60 49 73

Published 2008-11-24, 08:00 CET Updated 2014-01-22, 03:33 CET

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