SOURCE: Golden Ocean Group

August 22, 2007 02:58 ET

GOGL - Mandatory Notification of Trade and Share Options and Acquisition of Newbuilding

HAMILTON, BERMUDA--(Marketwire - August 22, 2007) -

On March 21, 2005, a Special General Meeting of Shareholders of Golden Ocean Group Limited (the "Company" or Golden Ocean") approved the adoption of a Share Option Plan: The Golden Ocean Group Limited Share Option Scheme (the "Plan"). The Plan was established for the purpose of encouraging or facilitating the holding of shares in the Company by the Company's employees, directors and officers and to assist the Company in recruiting, retaining and providing performance incentives to employees.

In June 2005, the Board granted a total of 9,300,000 options to acquire shares in the Company to certain employees and directors. These options vested over a two year period and the terms include a 10% annual increase in the exercise price effective from January 1, 2007.

On August 21, 2007, Mr. Herman Billung, CEO of Golden Ocean Management AS and a Primary Insider, declared his intention to exercise 375,000 options at a price of NOK 3.85. As permitted by the rules of the Plan, the Company has exercised its right to make a cash payment in lieu of issuing shares that would be due on the exercise of these option. In addition, three other employees have exercised a total of 437,500 options at a price of NOK 4.06 of which 250,000 will be subject to cash settlement and 187,500 shares will be issued.

On August 21, 2007, the Board of the Company had granted a further 812,500 options to employees under the terms of the Plan. These options have a five year term and will be come exercisable one-third annually over a three year period. These options have an exercise price on grant of NOK 24.62 which represents the closing share price of the Company on August 21, 2007 plus 5%. 375,000 of these options have been granted to Mr. Billung and the balance granted to other employees.

On August 21, 2007, Mr. Herman Billung has also sold 30,000 shares in the Company at a price of NOK 23.45. Mr. Billung's shareholding in the Company after these transactions is 0 and he holds 1,500,000 options to acquire shares in the Company.

Total shares outstanding in the Company following the issue of new shares will be 271,565,107.

Golden Ocean Group Limited ("Golden Ocean") is further pleased to advise that the Company has acquired one additional newbuilding contract at Zhoushan Jinhaiwan Shipyard in China. The vessel of 176.000 dwt will be delivered in September 2010 and the agreed purchase price is $79 million.

Given the firm prices for newbuildings in today's market, the Board of Golden Ocean sees that the new signed deal based on the attractive contract price will create additional value for the shareholders in Golden Ocean.

Hamilton, Bermuda August 21, 2007

Copyright © Hugin ASA 2007. All rights reserved.

Contact Information

  • Contact Persons:
    Herman Billung
    Golden Ocean Management AS
    +47 22 01 73 41

    Geir Karlsen
    Golden Ocean Management AS
    +47 22 01 73 53