Stonepeak is buying liquefied natural gas (LNG) carrier Teekay LNG Partners in a $6.2bn (€5.3bn).
Stonepeak funds are offering $17 each for each of Teekay LNG’s units, a price which represents a premium of 8.3% to the last closing price of Teekay LNG’s common units.
The consolidated Teekay entities manage and operate total assets under management of $9bn, comprising approximately 130 liquefied gas carriers, conventional tankers, and other marine assets. With offices in 10 countries, Teekay provides a comprehensive set of marine services to the world’s leading oil and gas companies.
The deal is the result of a review by Teekay board of strategic alternatives available to Teekay LNG.
Mark Kremin, president and CEO of Teekay Gas Group, 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.”
James Wyper, senior managing director at Stonepeak, 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.
“We are particularly excited to partner with Teekay LNG’s best-in-class management team to bring cheaper, cleaner, more reliable energy supply to all parts of the world, especially in Asia where we have been active investors in the ongoing shift to cleaner fuels and renewables.”
Kenneth Hvid, Teekay’s president and CEO, said: “We believe this transaction represents a unique opportunity to monetise 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.”
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