Last week, GasLog Ltd and GasLog Partners LP, owners and operators of LNG carriers, announced that they entered into an agreement under which GasLog will acquire all of the GasLog Partners LP common units that are not beneficially owned by GasLog.
According to the company, GasLog will buy the Partnership’s common units for an overall sum of $8.65 per common unit in cash, of which $3.28 will be distributed as part of a special distribution to the Partnership’s unitholders in connection with the closing of the Transaction and the remaining amount will be paid by GasLog as merger consideration at the time of the Transaction’s closing.
The overall consideration of $8.65 per common unit represents a 24% premium to the closing price of the Partnership’s common units on January 24, 2023, the last trading day prior to the public disclosure of GasLog’s initial offer, and a 31% premium to the volume weighted average price of the Partnership’s common units over the 30 calendar days prior to January 24, 2023.
The transaction is anticipated to close by the end of the third quarter of 2023, provided that it is approved by the holders of a majority of the partnership’s common units and that certain usual closing conditions are met.
With the Partnership, GasLog signed into a support agreement pledging to vote its common units in favor of the merger. GasLog currently owns 30.2% of the Partnership’s common units.
As GasLog stated, the preference units of the Partnership will remain outstanding and continue to trade on the New York Stock Exchange immediately following the completion of the Transaction.
