Financial Supervisory Authority of Norway to revoke Navigea Securities’ licenses

18. March 2014 – Navigea Securities AS (Navigea), a company in the Agasti group (Agasti), has received a notification from the Financial Supervisory Authority of Norway regarding planned withdrawal of Navigea’s licenses, following the authority’s on-site inspection in April 2013. The notification is not a final ruling. However, Navigea must prepare for liquidation process should the notice be confirmed. Regardless of the final decision, the Agasti group will safeguard its clients and their investments. The remaining parts of the Agasti group will not be affected by the notified ruling and will continue to be further developed independently of this process. Preliminary analyses indicate that the group may further strengthen its profitability following a possible liquidation of Navigea.

“First and foremost we would like to apologise for this situation to all of Navigea’s customers. We will now examine the notification’s contents thoroughly and evaluate how we should approach the future process,” says Chief Executive Officer of Agasti Holding ASA, Jørgen Pleym Ulvness.

Navigea has experienced a positive trend in customer satisfaction levels during the past year.

“Our current focus is to support Navigea’s customers in the best possible manner, be available to them and continue our focus on restructuring our business to highlight underlying values and improve liquidity. We will therefore enter a dialogue with the Financial Supervisory Authority to facilitate the most professional and orderly process possible following receipt of the notification. At the same time, the Agasti group will look ahead and in parallel focus on developing its continued operations, including providing high-quality investment solutions and safeguard customers’ investments in the future. I can assure everyone that we will take all necessary measures to ensure the profitability of the group,” says Jørgen Pleym Ulvness.

Throughout 2013, Agasti has evaluated alternative strategies for the group, including a scenario without an investment advisory function. These discussions have been conducted independently of the Financial Supervisory Authority’s on-site inspection, amongst others because offering investment advice is resource intensive and provides limited opportunities for growth and earnings. Today, 70 percent of the group’s revenues, and only approximately 55 percent of the group’s cost base, are related to Agasti’s two remaining business areas, Capital Markets and Investment Management. Both business areas showed significant progress in the second half of 2013 and contributed towards the Agasti group reporting an operating profit for the full year. Preliminary analyses indicate that the group may further strengthen its profitability following a possible liquidation of Navigea.

The consequences of a decision in accordance with the notification from the Financial Supervisory Authority will potentially affect Agasti’s financial results negatively in 2014, as a result of restructuring costs. However, the group may still deliver positive results if it delivers on its ambitions within its other business areas. The group expects increased profitability from 2015 onwards, based on the business platform that was established throughout 2013.

“In 2013, Agasti delivered a positive operating result for the first time in five years, and we expect the positive development with Capital Markets and Investment Management to continue. Even though we are disappointed about the received notification, it is important to stress that the remaining parts of our business are solid,” says Jørgen Pleym Ulvness.

Earlier this winter the Agasti group entered a cooperation with Griff, one of Norway’s most renowned companies within investment advice and analysis. The Agasti group’s customers will, through Griff, receive both analyses and allocation advice of high quality. The fund management business, which has delivered solid returns over several years, will continue. The group will also continue to offer attractive investments within property, shipping, energy and private equity through its operation in Agasti Wunderlich Capital Markets AS and investment management company Obligo Investment Management AS, which has established one of Norway’s most competent and experienced organisations.  

Agasti will provide further details about the forthcoming process and continued operations at a later stage. Navigea will inform all its customers directly, personally and via www.navigea.no. Navigea’s operation will continue as is until further notice is given.

For further information:
Jørgen Pleym Ulvness, Chief Executive Officer of Agasti Holding ASA, phone: +47 906 67 877 / jpu@agasti.no
Tor Arne Olsen, Chief Communication Officer of Agasti Holding ASA, phone: +47 900 90 470 / tao@agasti.no
Kjersti Aksnes Gjesdahl, Chief Executive Officer of Navigea Securities AS, phone: +47 415 58 225 / kag@navigea.no

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.