Norway-based shipping firm and FSRU operator Hoegh LNG could follow the steps of its peer GasLog to go private as part of a plan revealed on Monday.
Hoegh LNG’s largest shareholder Leif Hoegh and funds managed by US-based Morgan Stanley Infrastructure Partners have formed a 50/50 joint venture named Larus Holding in an attempt to take the firm private.
The new venture would acquire the remaining issued and outstanding shares of Hoegh LNG “not currently owned by LHC or its affiliates, representing approximately 50.4% of the shares outstanding, by way of amalgamation between Larus Limited, a subsidiary of JVCo (BidCo), and the company,” the firm said in a statement.
In addition, the share acquisition price of 23.50 Norwegian crowns ($2.74) reflects a premium of approximately 36% to the closing share price on March 5 but also 32% to 30-day volume-weighted average share price, the statement said.
The offer price values the total share capital of the company at about 1.81 billion Norwegian crowns ($211.5 million), Hoegh LNG said.
Moreover, Hoegh LNG’s board has unanimously approved the amalgamation agreement and determined to recommend the unaffiliated shareholders of the company to vote in favour of the transaction, it said.
The consent of two-thirds of the shares voted on the resolution at the general meeting is required for such approval.
Furthermore, Hoegh LNG said it has requested and received a “fairness opinion” from Fearnley Securities concluding that the offered price per share represents “fair value for the shareholders.”
Subject to the approval, the transaction should close in the first half of 2021.
The common and preference units of Hoegh LNG Partners will remain outstanding and continue to trade on the New York Stock Exchange, it added.