Viking Line - Company Announcement

Viking Line Abp: De-mutualisation and merger within the Alandia Insurance Group

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