Stonepeak is set to acquire Teekay LNG in a $6.2m transaction amid rising global LNG prices.
Unveiling its purchase plans on Monday (4th Oct), US-based Stonepeak said it has inked an agreement and plan of merger with Teekay LNG in major move for the LNG market.
On the deal, Mark Kremin, President and CEO of Teekay Gas Group, said, “This is a transformation transaction for Teekay LNG that will enable existing unitholders to realise an attractive valuation and immediate liquidity on closing.”
“Under Stonepeak’s ownership, we expect Teekay LNG to have improved access to competitively priced capital for both fleet renewal and potential future growth in the next phase of our development, which has not been available through the public equity capital market for many years.”
“We are excited to partner with Stonepeak and look forward to continuing to build our leading market positions, while maintaining our strong focus on operational excellence.”
Teekay LNG believes the purchase of Stonepeak will provide substantial benefits to its customers, employees, joint venture partners and capital providers in the future,
James Wyper Senior Managing Director at Stonepeak, added, “Stonepeak has long recognise the growing global demand for LNG and importance of natural gas as a bridge fuel, particularly as the world continues to shift toward cleaner sources of energy.”
“Through this transaction, we have an exciting opportunity to invest in a critical energy transition infrastructure business in the form of Teekay LNG’s high-quality, modern fleet of vessels and stable long-term customer contracts.”
“We are particularly excited to partner with Teekay LNG’s best-in-class management team to bring cheaper, cleaner, more reliable energy supply to all part of the world, especially in Asia where we have been active investors in the ongoing shift to cleaner fuels and renewables.”