Mariehamn, 2014-10-27 14:30 CET (GLOBE NEWSWIRE) --
Viking Line Abp STOCK EXCHANGE RELEASE 27.10.2014, 3.30 P.M.
De-mutualisation and merger within the Alandia Insurance Group
With reference to our stock exchange releases of February 25, 2014, June 12, 2014 and July 14, 2014 please be advised that all the necessary general meetings have been held and consent has been received from the Finnish Financial Supervisory Authority to re-organize Redarnas Ömsesidiga Försäkringsbolag (Finnish business identity code 0145065-2), "RÖF" − an Åland-based shipowners' mutual insurance company and parent company of the Alandia Insurance Group − into a limited liability insurance company and to merge RÖF with its wholly owned insurance subsidiary Försäkringsaktiebolaget Alandia (0205048-2), "Alandia", with RÖF as the acquiring company and Alandia as the acquired company.
The process will be completed in such a way that both the change in the legal form of RÖF and the merger are registered in the Finnish Trade Register as of December 31, 2014. Distribution of shares will be carried out as of the same date.
After implementation of the de-mutualisation and merger, the shares in the new limited liability insurance company will be allocated proportionally on the basis of premiums paid during the years 2011 – 2013 by those companies that, on the merger date, have had an uninterrupted co-owner relationship with RÖF that has lasted at least one year.
According to preliminary calculations, Viking Line Abp's ownership share in the merged company will amount to slightly more than 20 per cent. According to our preliminary assessment, Viking Line Abp will not have significant influence on the company. When the change in the legal form of the company is registered, Viking Line Abp’s shares in the merged company will be appraised at fair value.
Preliminary appraisals of the net asset value of the merged company that have been conducted by outside appraisers give a total value of EUR 140 M based on the financial statements as of December 31, 2013.
Nonrecurring income equivalent to Viking Line Abp’s holding in the merged company will be recognized as a financial income item in the consolidated statement of comprehensive income, and the shares will be reported under “Investments available for sale” in the consolidated balance sheet. The final income item will depend on an appraisal as of December 31, 2014. During future accounting periods, changes in the fair value of these shares will be reported via the statement of comprehensive income against the fair value reserve under equity.
For further information on Alandia Insurance, please see www.alandia.com
VIKING LINE ABP
Jan Hanses
President and CEO
CEO Jan Hanses, jan.hanses@vikingline.com, +358-(0)18-27000