Page 4 - GLNG Week 40 2021

GLNG COMMENTARY GLNG

Stonepeak strikes $6.2bn

deal to buy Teekay LNG

Alternative investment firm Stonepeak has agreed to buy

shipping company Teekay LNG Partners for $6.2bn as demand

for LNG booms

INVESTMENT BOOMING natural gas demand and rising Teekay LNG’s general partner, Teekay GP, which
prices are boosting interest in investing in the holds around 1.6mn Teekay LNG common
WHAT: LNG industry. This week, New York-based alter- units.
Stonepeak is buying native investment firm Stonepeak announced Stonepeak is offering $17 per common unit
Teekay LNG Partners for that it had struck a deal to buy shipping firm of Teekay LNG, which represents a premium
$6.2bn. Teekay LNG Partners in a transaction valued at of 8.3% to the company’s closing share price
$6.2bn. on October 1. Excluding Teekay’s debt, the
WHY: Bermuda-based Teekay LNG is the world’s deal is worth $1.5bn. The companies expect
The investment firm is third-largest independent LNG carrier owner to close the transaction by the end of 2021,
hoping to benefit from and operator. Teekay’s president and CEO, Ken- subject to approval by Teekay LNG’s common
booming demand for LNG. neth Hvid, described the company this week as unitholders.
having “one of the biggest and most-diversified The transaction is the result of a review by
WHAT NEXT: portfolios of long-term contracts with leading Teekay GP’s board of directors of strategic alter-
Teekay is expected to players in the LNG industry”. The deal is antici- natives available to the LNG unit.
benefit from improved pated to improve Teekay LNG’s access to capital For Stonepeak, the move is the latest foray
access to capital for fleet for fleet renewal and potential future growth. into the LNG space. Until recently, the firm was
renewal and potential also part of the Hygo Energy Transition joint
future growth as a result Big spender venture between Golar LNG and Stonepeak
of the deal. Under the agreement, investment vehicles man- Infrastructure Fund II Cayman. Hygo was sold
aged by Stonepeak will acquire all the issued and to New Fortress Energy for $2.18bn earlier in
outstanding common units of Teekay LNG. This 2021.
includes around 36mn common units owned “Under Stonepeak’s ownership, we expect
by Teekay Corp., and 100% of its ownership in Teekay LNG to have improved access to

P4 www. NEWSBASE .com Week 40 08•October•2021