Hoegh LNG makes buyout offer for HMLP

Floating player Hoegh LNG is planning to buy all publicly held common units of New York-listed Hoegh LNG Partners as part of a new move revealed on Monday.

Hoegh LNG said in a statement on Monday it had submitted a non-binding proposal to HMLP’s board.

Under the buyout offer, a wholly-owned subsidiary of Hoegh LNG would purchase all publicly held common units of the partnership in exchange for $4.25 in cash per common unit.

If approved, the transaction would be effected through a merger of HMLP with the unit of Hoegh LNG.

“The proposed transaction is subject to the negotiation and approval of mutually satisfactory definitive documentation by the parties thereto,” it said.

Following a definitive agreement, the transaction would also require approval by a majority of the holders of outstanding common units in the partnership, Hoegh LNG said.

HMLP to evaluate the offer

HMLP said in a separate statement the conflicts committee of its board, comprised of only non-Hoegh LNG affiliated directors, would retain advisors and evaluate the offer.

“There can be no assurance that definitive documentation will be executed or that any transaction will materialize,” it said.

According to HMLP’s website, Hoegh LNG currently holds about 45.7 percent of all of the partnership’s common units. Also, HMLP has a total of about 33.3 million common units issued and outstanding as of September 30, 2021.

Hoegh LNG’s finance chief is also the interim CEO of HMLP following the departure of Sveinung Stohle.

Furthermore, this new move comes at a time when HMLP is working to refinance the FSRU Lampung debt facility.

HMLP and Indonesian state-owned gas firm PT Perusahaan Gas Negara (PGN), a unit of Pertamina, are in a dispute over issues related to the Lampung FSRU charter.

This move also follows a deal by Leif Hoegh and funds managed by US-based Morgan Stanley Infrastructure earlier this year.

The two firms formed a 50/50 joint venture named Larus Holding as part of plans to take Hoegh LNG private. They completed the deal in May this year.

Hoegh LNG’s fleet consists of ten modern FSRUs and two LNG carriers while HMLP operates five of these vessels.

Most Popular

Venture Global nears launch of Plaquemines LNG production

According to a FERC filing, Plaquemines LNG has now fulfilled the environmental conditions which were necessary prior to the...

Geocean kicks off work on Congo FLNG mooring project

French marine and offshore contractor, Geocean, a VINCI Construction Grands Projets unit, has started working on a new contract...

Golar CEO says Nigerian FLNG FID unlikely before 2025

In June, Golar and NNPC signed a project development agreement (PDA) for the deployment of an FLNG. The agreement aims...

More News Like This

Hoegh Evi sees increased interest for FSRU projects in Americas

"Business activity for potential new FSRU projects remain high across all regions, and in particular there has been increased...

Hoegh Evi plans French hydrogen import terminal

In that regard, Hoegh Evi and the port signed a memorandum of understanding for the project. Hoegh Evi said hydrogen...

Indonesia’s Lampung FSRU completes 65th STS LNG transfer

PGN LNG, a unit of PGN and the operator of the floating LNG import facility offshore Lampung, said on...

Avenir repositions to become pure-play LNG shipping firm

Avenir's shareholders are Stolt-Nielsen, Golar LNG, and Hoegh Evi, previously known as Hoegh LNG. The small-scale LNG firm said on...