FAIRSTAR financial strength boosted by new equity
February 23, 2010
Fairstar Heavy Transport (FAIR) announces the successful completion of a private placement towards Norwegian and international institutional investors of 4,317,500 new shares at a price of NOK 12.50 per share. The share issue represents approximately 10% of the shares outstanding prior to the placement. Total gross proceeds from the Private Placement amounted to approximately NOK 54 million.
 
Mark de Haas, Fairstar CFO commented: “We welcome a number of new shareholders and we appreciate the participation of many current Fairstar shareholders. Our strategy to pursue high-value multi-voyage energy projects requires patience, focus and stable financial recourses. The accepted debt of other heavy transport players has resulted in a clear destruction of value for their shareholders by deep discounting in the spot market. Last night’s equity issue underscores the endorsement of Fairstar’s high value strategy. We are determined to set an example for our industry by creating sustainable value for shareholders.”
 
Philip Adkins, Fairstar CEO added: “Fairstar carefully considered the timing of this placement. The imminent announcement of several high profile contract awards may trigger a significant rerating of Fairstar’s market capitalisation. Making money for our partners is the foundation of our relationship with the equity markets. Creating value for shareholders, keeping promises to bondholders and maintaining the trust of bankers are the qualities expected of leading companies who enjoy the privilege and accept the responsibilities of access to the capital in today’s volatile world.”
 
The new shares to be issued in connection with the Private Placement will be issued in accordance with the Board proxy established at the Company's Annual General Meeting held on 19 May 2009. The total number of outstanding shares after the issue will be 47,497,047 shares, each with a nominal value of EUR 0.46. The new shares to be issued in the Private Placement will not be tradable until the share capital increase has been registered and the new shares have been delivered against payment to the applicants VPS-account, expected to take place on or about 26 February 2010.
 
The Private Placement was managed by ABG Sundal Collier Norge ASA and Carnegie ASA as joint-lead managers.