Energy Central Professional

 

Stonepeak to acquire LNG carrier operator Teekay LNG for $6.2 bn.


NS Energy  

 

    Stonepeak, an Alternative investment company, has decided to buy Teekay LNG Partners, a Bermuda-based operator and owner of liquefied natural gas (LNG) carriers, in an all-cash transaction worth $6.2 bn. The consideration involves proportionate and consolidated joint venture net debt aside from $1.5 bn in common unit equity value. Through its carriers, Teekay LNG offers liquefied petroleum gas (LPG) and LNG services primarily under long-term, fee-based charter deals. The firm has interests in 47 LNG carriers, seven multi-gas carriers, and 21 mid-size LPG carriers. Its ownership stakes in the vessels range 20-100%. Moreover, it has a 30% stake in an LNG regasification terminal. Teekay LNG is a publicly traded master limited collaboration formed by Bermuda-based shipping group Teekay as part of its move to expand its operations in the LPG and LNG shipping industries. After the closing of the transaction, its common units will be delisted from the New York Stock Exchange (NYSE). Under the deal, Stonepeak will offer a $17/share cost to purchase the entire publicly listed LPG and LNG shipping company. In line with this, investment vehicles handled by Stonepeak will acquire almost 36 M shares held by Teekay and the latter's ownership in Teekay LNG's general ally, Teekay GP. This involves an economic ownership interest equivalent to roughly 1.6 M Teekay LNG shares. At present, Teekay has a stake of around 41% in the LNG carrier owner. It has reached a voting and support deal to vote in favour of the transaction with Stonepeak. The closing of the agreement is subject to approval of Teekay LNG's common unitholders and selected customary conditions, and would happen by end-2021. Original Source: NS Energy, http://www.nsenergybusiness.com.

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