(Oslo 27 April 2007) Block Watne Gruppen ASA has successfully completed a private placement of NOK 652 million directed towards institutional and professional investors. The offer price was set at NOK 45 per share. The private placement consists of 14 497 758 new shares with a par value of NOK 0.20 per share. The private placement was close to three times oversubscribed with participation from leading institutional investors in Norway and internationally.

 

"I am very pleased with the strong interest for shares in Block Watne Gruppen from existing and new shareholders in the share issue that has been completed. The share issue has broadened our shareholder base and will provide Block Watne Gruppen with a strong financial position also after the acquisition of Prevesta", comments Lars Nilsen, CEO in Block Watne Gruppen.

 

As announced in the stock exchange announcement dated 19 April 2007, the proceeds from the private placement will be used to strengthen Block Watne Gruppen's equity and liquidity position.

 

The share capital increase in connection with the share issue constitutes NOK 2 899 551.60. The share issue and will be carried out based on an authorisation granted to the board of directors in Block Watne Gruppen's annual general meeting on 18 April 2007. The company`s share capital following the share issue will be NOK 11 899 551.60 divided into 59 497 758 shares with a par value of NOK 0.20 per share.

 

In order to secure timely delivery of tradable shares in Block Watne Gruppen to investors who have been allocated shares in the private placement, SEB Enskilda ASA has entered into an agreement with the main shareholder in Block Watne Gruppen, Lani Industrier AS, whereby SEB Enskilda ASA has borrowed already issued and listed shares and deliver such shares to investors against payment of the offer price. SEB Enskilda ASA will use the new shares issued in the private placement to settle the share loan. A prospectus will be prepared and issued in connection with the listing of the new shares issued in the private placement.

 

 

For further information, please contact:

Lars Nilsen, CEO, Block Watne Gruppen ASA, tel: +47 23 24 60 00

Ketil Kvalvik, CFO, Block Watne Gruppen ASA, tel: +47 90 77 13 15