North Energy ASA - Strategic partner

Reach Subsea ASA (“Reach Subsea”) has received an offer from an undisclosed strategic partner to enter into a comprehensive agreement covering both an equity investment in Reach Subsea and a strategic co-operation on commercialisation of Reach Remote.

The offer is for Reach Subsea to issue 46,126,567 new shares towards the strategic partner at NOK 3.25 per share, thereby raising NOK 150 million in new equity. Furthermore, the offer entails that Reach Subsea will issue warrants at a subscription price of NOK 4.00 per share whereby each warrant will give the strategic partner the right to subscribe for one new Reach Subsea share. The warrants have a duration of 3 years and can be exercised anytime. If all warrants are exercised, the strategic partner will potentially end up with a 33% ownership stake.

The Board of Reach Subsea is positive to the proposed offer, which is subject to relevant corporate approvals by both parties and certain other conditions. The Board will work towards finalising and concluding an agreement within the next couple of weeks, to be put forth to an extraordinary general meeting in Reach.

North Energy ASA (“North Energy”) is currently the largest shareholder in Reach Subsea with a 32% ownership interest. In the event the proposed offer is concluded, and excluding any warrant exercise, North Energy and the strategic partner will be joint major shareholders of Reach Subsea with an ownership interest of 24% each.

For further information, please contact:

Anders Onarheim

Chairman of the Board