LNG News Editor:
Teekay LNG Partners has become the latest fleet owner to be targeted by a US investment fund with Stonepeak Infrastructure Partners setting up a deal worth $6.2 billion to acquire the Bermuda-based shipping line, which has a large portfolio of vessels under charter contracts and part ownership of a Middle East LNG import terminal.
Stonepeak offered $17 per unit, which represents a premium of 8.3 percent on the previous closing price of Teekay LNG's common units.
Excluding Teekay's debt, the deal is for $1.5 billion and the companies expect to close the transaction by the end of 2021.
Shares of Teekay LNG, which were up almost 48 percent this year, surged an additional 9.53 percent to $17.19 on the New York Stock Exchange after announcement, giving it a market capitalization of $1.49Bln.
The transaction is in the form of an agreement and plan of merger.
“Under the merger agreement, investment vehicles managed by Stonepeak will acquire all the issued and outstanding common units representing limited partner units in Teekay LNG,” said the statement.
“These include approximately 36.0 million common units owned by Teekay Corp., 100 percent of Teekay’s ownership in Teekay LNG’s general partner, with an economic ownership interest equivalent to 1.6 million Teekay LNG common units, for $17.00 per common unit and representing an enterprise value of $6.2Bln,” explained the statement.
Teekay LNG is one of the world’s largest independent owners and operators of LNG carriers, providing LNG and liquefied petroleum gas (LPG) shipping services.
The fleet is primarily under long-term contracts through its interests in 47 LNG carriers, 21 mid-size LPG carriers and seven multi-gas carriers.
Teekay LNG’s ownership interests in these vessels range from 20 percent to 100 percent.
Teekay is the latest LNG fleet owner to be the subject of a takeover or merger with New York-based fund and banking interests.
Höegh LNG Partners, the US affiliate of Höegh LNG Holdings, is now partnered with the infrastructure unit of US investment bank Morgan Stanley.
The LNG fleet controlled by Höegh LNG Partners consists of five vessels, mostly floating storage and regasification units that operate under long-term charters.
Höegh's and Teekay's rival GasLog Ltd, the Greek-based LNG shipping fleet owner with 35 vessels operating, agreed a merger earlier in 2021 with a unit of US fund giant BlackRock.
GasLog entered into a merger agreement with BlackRock’s Global Energy & Power Infrastructure (GEPIF), part of the New York-based firm focused on long-term infrastructure investments in the energy and power sectors.
The deal involved the acquisition of around 45 percent of GasLog Ltd’s outstanding common shares by BlackRock.