The Board of Directors of Vard Holdings Limited has announced that pursuant to the rationalization of operations in Romania, Vard Piping SRL’s pipe fabrication business was integrated in the Tulcea Shipyard and its engineering division was transferred to Vard Engineering Constanta SRL, a newly incorporated subsidiary in Romania.

Vard Piping SRL will be de-registered in due course. Vard Engineering Constanta SRL is 70% owned by Vard RO Holding SRL, a wholly-owned subsidiary of Vard Group AS which is 100% held by the company, while the remaining 30% is held by Vard Braila SA, a subsidiary of Vard RO Holding SRL.

With its specialized design office, Vard Engineering Constanta SRL will serve all the yards of the Group, capitalizing on engineering capacity available in Romania, especially in Tulcea and Constanta locations. The paid-up capital of the said company is € 320,000. The above investment is funded by internal sources and is not expected to have any material impact on the earnings per share or the net tangible assets per share of the company for the current financial year. The Board of Directors also announced that AJA Ship Design SA, a subsidiary in Romania, is under liquidation.

Press Release, October 17, 2013