Exmar has agreed to integrate its LNG assets and infrastructure with those of John Fredriksen’s Geveran and Flex LNG under a new USD 2.3 billion company – Exmar LNG Ltd.
Geveran and Exmar will pool their LNG assets and infrastructure under Flex LNG, in exchange for new shares in Flex LNG.
The new company will start operating under the name Exmar LNG in the third quarter of 2015, when the transaction is expected to be completed.
The new company will operate six LNG carriers, four of which are under construction. Exmar LNG will also operate five floating storage and regasification units (FSRU), one of which is under construction to become the world’s first regasification barge; and two floating liquefaction units (FLNG), currently under construction, of which Caribbean FLNG which will be the world’s first FLNG unit to be delivered in the first quarter of 2016 under a long – term contract to Pacific Rubiales.
Exmar LNG will have an estimated enterprise value of approximately USD 2.3 billion and an equity value of approximately USD 823.3 million.
Exmar will own 64.6 per cent of the outstanding shares and votes in the new company, and Geveran will own 30.7 per cent of the outstanding shares and votes.
As a result, Exmar will trigger an obligation to make a mandatory offer for the remaining shares in Exmar LNG within four weeks of the completion of the transaction.
Commenting on the Transaction, David McManus the chairman of the board of directors of the Company said:
“Since completing the restructuring of the Company it was clear that the next step was to create strong partnerships with industry players to grow the company into a major force in the LNG value chain. This process started with the investment in the Company by GEVERAN and I believe that now combining our efforts with EXMAR, a company that has been at the forefront of the technological developments for decades, positions the Company to maximize shareholders’ value in the long term.”
Nicolas Saverys (Chief Executive Officer of EXMAR) commented:
“We are excited about this new combination of strength with FLEX LNG and GEVERAN. This new venture will enable us to create shareholders value for the long term and will allow us to continue to grow in all segments of the LNG value chain. We are deeply committed to making this a success for all stakeholders and existing as well as future customers.”
Commenting on the Transaction, John Fredriksen said:
“I have known Nicolas Saverys and Exmar for more than 30 years. They have developed an impressive technical platform within the LNG industry. Together I believe we are uniquely positioned to grow and develop this company to the benefit of all shareholders. I am very enthusiastic about this partnership.”
Source and Image Credit: Flex LNG
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