NYSE-listed LNG carrier owner GasLog Partners said it had received a buyout offer from GasLog.
Under the unsolicited non-binding proposal, Peter Livanos-led GasLog proposes to acquire all of the outstanding common units representing limited partner interests of GasLog Partners LP (GLOP) not already beneficially owned by GasLog.
GasLog plans to structure the transaction as a merger, with GLOP surviving the merger as a wholly-owned subsidiary of GasLog.
Under the proposed transaction, each common unit would receive overall value of $7.70 per common unit in cash, consisting in part of a special distribution by the partnership of $2.33 per common unit in cash, according to a statement by GasLog Partners.
The cash would be distributed to the partnership’s unitholders immediately prior to the closing of the proposed transaction and the remainder to be paid by GasLog as merger consideration at the closing of the proposed transaction.
The deal is worth about $398 million.
GasLog currently owns 15,621,602 common units, representing about 30.2 percent of the total outstanding common units and 100 percent of the outstanding Class B units representing limited partner interests of GLOP.
In addition, GasLog owns all of the general partner interests in GasLog Partners through its wholly-owned subsidiary GasLog Partners GP LLC, the general partner of GLOP.
According to GLOP, its board of directors has authorized its conflicts committee, consisting only of non-GasLog affiliated directors, to retain advisors and to review, evaluate, negotiate and accept or reject the proposed transaction.
38 LNG carriers
GLOP’s fleet consists of 12 wholly-owned LNG carriers as well as two vessels on bareboat charters, with an average carrying capacity of about 159,000 cbm.
In total, the fleet of both GasLog and GLOP consists of 38 LNG carriers with 34 on the water plus four under construction.
Back in June 2021, GasLog completed its transaction with BlackRock’s Global Energy & Power Infrastructure team, taking the firm private.