Stonepeak, a New York-based investment firm has announced that it would be acquiring Bermuda-based shipping company Teekay LNG Partners, the world’s third largest independent LNG carrier in a deal valued at $6.2 billion. The acquisition is expected to be completed by the end of 2021.
Kenneth Hvid, the President and CEO of Teekay said, “We believe this Transaction represents a unique opportunity to monetize our position in Teekay LNG while realizing an attractive return on investment for Teekay and for Teekay LNG common unitholders. This transaction also provides Teekay with greater financial flexibility to leverage its existing operating franchise and industry-leading capabilities to pursue attractive investment opportunities in both the shipping sector and potentially in new and adjacent markets, which we expect to be dynamic as the world pushes for greater energy diversification.”
The transaction however, is subject to approval by the majority of Teekay LNG’s remains subject to approval by a majority of Teekay LNG’s stakeholders.
The ownership of the management services companies that are currently indulged in delivering the operations for Teekay LNG and its joint ventures under existing contracts will also be transferred to Teekay LNG by Teekay.
The CEO of Teekay Gas Group, Mark Kremin said, “Under Stonepeak’s ownership, we expect Teekay LNG to have improved access to competitively priced capital for both fleet renewal and potential future growth, which has not been available through the public equity capital markets for many years.”
James Wyper, the Senior Managing Director at Stonepeak added, “Stonepeak has long recognized the growing global demand for LNG and importance of natural gas as a bridge fuel, particularly as the world continues to shift toward cleaner sources of energy.”