Hoegh LNG expects to complete merger deal with HMLP this year

FSRU player Hoegh LNG has more than doubled its offer to buy all publicly held common units of New York-listed Hoegh LNG Partners and expects to close the merger deal in the second half of this year.

Back in December, Hoegh LNG said it had submitted a non-binding proposal to HMLP’s board to buy all publicly held common units of the partnership in exchange for $4.25 in cash per common unit.

The firm said in a statement on Wednesday it has entered into an agreement and plan of merger with HMLP but the deal comes with a much higher price tag.

Hoegh LNG said it would acquire by merger all of the outstanding common units representing limited partner interests of the partnership not already owned by Hoegh LNG in exchange for $9.25 in cash per common unit.

This puts the total purchase price to about $167.6 million. Hoegh LNG currently owns 45.7 percent of the the partnership’s common units.

The merger consideration represents an increase of $5.32 or 135.4 percent per common unit when compared to the closing price per common unit of $3.93 on December 2, 2021, immediately prior to Hoegh LNG’s initial offer.

Also, the new offer is a premium of $2.40 or 35 percent to the $6.85 closing price per common unit on May 24, 2022 and a premium of 39.2 percent to the volume weighted average price of the partnership’s common units for the 30-trading day period ended May 24, Hoegh LNG said.

Hoegh LNG said the transaction remains subject to approval of the merger agreement and certain regulatory filings and customary closing conditions.

Five FSRUs

HMLP operates five FSRUs, namely Hoegh Grace, Hoegh Gallant, Cape Ann, Neptune, and PGN FSRU Lampung.

To remind, HMLP said in August last year it had filed a countersuit against Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN), a unit of Pertamina, over issues related to the Lampung FSRU charter.

The vessel serves a 20-year charter deal with PGN LNG, a unit of PGN, off the southeast coast of Sumatra in Indonesia. Hoegh LNG manages the FSRU while the limited partnership owns it.

Hoegh LNG said in its first-quarter report that HMLP’s main focus remains the dispute with the charterer of PGN FSRU Lampung but “no assurance can be given at this time as to the outcome of the dispute.”

Earlier this month, the FSRU located off the southeast coast of Sumatra in Indonesia had completed its 39th ship-to-ship LNG transfer since 2014.

- Advertisements -

Most Popular

ExxonMobil working on larger Rovuma LNG export project in Mozambique

US energy giant ExxonMobil has boosted the capacity of the planned Rovuma LNG onshore terminal in Mozambique and is...

Sempra takes FID on Port Arthur LNG project

US LNG player Sempra Infrastructure, a unit of Sempra, has taken a final investment decision for the first phase...

Excelerate to buy FSRU from Maran Gas

US floating LNG player Excelerate Energy plans to exercise an option to buy the 2020-built FSRU Sequoia from Greece’s...

More News Like This

Germany’s third FSRU terminal starts delivering gas to grid

The 170,000-cbm FSRU Hoegh Gannet, which serves the Elbehafen LNG import terminal in Germany's Brunsbuettel, has started supplying natural...

Hoegh wraps up purchase of CoolCo’s LNG carrier

FSRU player Hoegh LNG has completed the previously announced deal to purchase the 2013-built LNG carrier Golar Seal from...

Brunsbuettel FSRU wraps up first LPG op

The 170,000-cbm FSRU Hoegh Gannet, which serves the Elbehafen LNG import terminal in Germany's Brunsbuettel, has transferred the first...

Hoegh LNG to send FSRU to Brazil in second quarter

Hoegh LNG is planning to send its 170,000-cbm FSRU Hoegh Giant in the second quarter of this year to...