By Dominic Chopping

Norwegian technology group Kongsberg Gruppen ASA (KOG.OS) confirmed plans on Friday to raise 5 billion Norwegian kroner ($608 million) via a fully underwritten rights issue to part finance its acquisition of Rolls-Royce Commercial Marine.

Kongsberg previously announced a deal with Rolls-Royce Holdings PLC (RR.LN) to buy its commercial marine business for a total of 500 million pounds ($661 million) as it looks to bolster its offering to the maritime industry.

Norway's government, which owns 50% of Kongsberg, received parliamentary consent earlier this week to participate in the rights issue.

The other half of the rights issue is underwritten by a syndicate consisting of DNB Markets and Danske Bank A/S (DANSKE.KO).

The rights issue is subject to shareholder approval at an extraordinary general meeting die to be held on November 2.

The subscription price for the new shares to be issued, the number of new shares and the amount of the share capital increase will be determined by the board prior to the EGM.

Arctic Securities AS, DNB and Danske Bank are acting as joint global coordinators.

-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

(END) Dow Jones Newswires

October 12, 2018 02:42 ET (06:42 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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