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Stonepeak set to acquire Teekay LNG for US$6.2Bn
Private equity firm Stonepeak has agreed a US$6.2Bn deal to acquire Teekay LNG Partners
Under the terms of the deal, termed a merger agreement, investment vehicles managed by Stonepeak will acquire all shares in Teekay LNG, including approximately 36M common units owned by Teekay Corp.
The deal includes net debt, and US$1.5Bn in common share equity value.
Stonepeak will acquire Teekay’s ownership in Teekay LNG’s general partner, Teekay GP including 1.6M Teekay LNG common shares for US$17 per share.
Teekay Corp will transfer to Teekay LNG, the ownership of the management services companies that currently deliver the operations for Teekay LNG and some joint ventures under existing management services contracts.
Teekay Gas Group president and chief executive Mark Kremin said, “This is a transformative transaction for Teekay LNG that will enable existing unitholders to realise an attractive valuation and immediate liquidity on closing.”
“Under Stonepeak’s ownership, we expect Teekay LNG to have improved access to competitively priced capital for both fleet renewal and potential future growth in the next phase of our development, which has not been available through the public equity capital markets for many years.
Stonepeak senior managing director James Wyper said the firm has long recognised the growing global demand for LNG and its importance as a bridge fuel.
Mr Wyper said, “Through this transaction, we have an exciting opportunity to invest in a critical energy transition infrastructure business in the form of Teekay LNG’s high-quality, modern fleet of vessels and stable long-term customer contracts.”
Teekay LNG is one of the world’s largest independent owners and operators of LNG carriers with a fleet of 47 LNG carriers, 21 mid-size LPG carriers and seven multi-gas carriers.
Teekay president and chief executive Kenneth Hvid added, “We believe this transaction represents a unique opportunity to monetise our position in Teekay LNG while realising 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 deal was approved by the Board of Directors of Teekay GP and Teekay Corp, including the unanimous approval of the Conflicts Committee of Teekay GP, and is targeted to close by the end of 2021.
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