Norwegian shipowner Leif Höegh & Co Ltd and fund manager Morgan Stanley Infrastructure Partners have proposed an offer to take Oslo-listed Höegh LNG Holdings Ltd private
Through Larus Holding Limited, Leif Höegh & Co and Morgan Stanley Infrastructure Partners control 49.6% of the floating storage and regasification unit (FSRU) giant. They are looking to acquire the remaining 50.4% of the shares in Oslo-listed Höegh LNG Holdings they currently do not own. They are offering Nkr23.50 (US$2.74) per share, which represents a premium of approximately 36% to the closing share price on 5 March and 32% to 30-day volume-weighted average share price. The offer price values the total share capital of Höegh LNG Holdings at approximately Nkr1,815M (US$211.7M).
The board of Höegh LNG Holdings Ltd has unanimously approved the offer based the recommendation of a special board committee. A fairness opinion received from Fearnley Securities confirmed the offer price per share represents fair value for shareholders.
The transaction is anticipated to close in H1 2021, with consent required from two-thirds of shareholders needed for approval, with a deadline of no later than 9 August. If approved, the common shares of Höegh LNG Holdings Ltd will be delisted from the Oslo Stock Exchange.
The common and preference units of Höegh LNG Partners LP will remain outstanding and continue to trade on the New York Stock Exchange as before.
Höegh LNG is one of the premier players in the FSRU market, with 10 vessels in its fleet, along with two LNG carriers.
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