Leading FSRU owner Höegh LNG has struck a merger agreement to acquire Höegh LNG Partners in a cash-for-stock transaction
Under the agreement, Höegh LNG will acquire all of the outstanding common shares of Höegh LNG Partners that it does not already own in exchange for US$9.25 in cash per unit in a transaction valued at US$167.6M. The cash offer for the shares represents a premium of US$5.32 (135.4%) per common share when compared with the closing price per common unit of US$3.93 on 3 December 2021, immediately prior to Höegh LNG’s initial offer, and a premium of US$2.40 (35.0%) to the US$6.85 closing price per common unit on 24 May 2022 and a premium of 39.2% to the volume weighted average price of the Höegh LNG Partners’ common units for the 30-trading day period ended 24 May 2022.
Höegh LNG owns 45.7% of the common shares of the partnership and has committed to vote its common units in favour of the merger. Additionally, the merger has been approved by the board of Höegh LNG Partners, which has recommended the offer to shareholders not affiliated with Höegh LNG. Subject to approvals, the merger is expected to close in H2 2022.
As LNG Shipping & Terminals previously reported, Höegh LNG recently signed an agreement with Germany for the long-term charter of two floating storage and regasification units, which will go into operation in 2023.
