Maersk sells LNG unit to Teekay and Marubeni
Global maritime transport group Teekay LNG and Japanese trading company Marubeni Corp have agreed to buy Danish shipping group A.P. Moller-Maersk's liquefied natural gas (LNG) shipping unit.
The firms said in separate statements on Wednesday the deal was valued at $1.4 billion.
Teekay and Marubeni had announced a joint bid for the business, which owns and operates six LNG vessels and has a stake in two more, on Oct. 5.
"As Maersk LNG is not within those core business areas where the group intends to invest, the conclusion is that Maersk LNG would benefit from a different ownership," Maersk said.
The deal is subject to customer consents and regulatory approval and is expected to be completed during the fourth quarter, it said.
Teekay said the joint venture with Marubeni had secured loan facilities totalling $1.12 billion to finance the deal. The remaining $280 million is expected to be financed by cash.
Teekay will take over technical management of the acquired vessels after a transition period.
Teekay said it expected the deal to add to its distributable cash flow per unit, while Maersk said it would have no significant effect on results.
Maersk said in August that the LNG shipping market saw increasing activity in the first half of 2011 and its LNG vessels were fully employed, with new contract signings for the Maersk LNG unit.
A Maersk official was quoted last month as saying the unit could be worth $1.2-$1.7 billion. Prices of $1.5-$2 billion have been mentioned in other media reports.
"We are pleased with the price. Due to long contracts, the value of the business is pretty stable," Maersk official Claus Hemmnigsen told Reuters. "The contracts depend little on market fluctuations. They have steady earnings over a longer period."
The firms said in separate statements on Wednesday the deal was valued at $1.4 billion.
Teekay and Marubeni had announced a joint bid for the business, which owns and operates six LNG vessels and has a stake in two more, on Oct. 5.
"As Maersk LNG is not within those core business areas where the group intends to invest, the conclusion is that Maersk LNG would benefit from a different ownership," Maersk said.
The deal is subject to customer consents and regulatory approval and is expected to be completed during the fourth quarter, it said.
Teekay said the joint venture with Marubeni had secured loan facilities totalling $1.12 billion to finance the deal. The remaining $280 million is expected to be financed by cash.
Teekay will take over technical management of the acquired vessels after a transition period.
Teekay said it expected the deal to add to its distributable cash flow per unit, while Maersk said it would have no significant effect on results.
Maersk said in August that the LNG shipping market saw increasing activity in the first half of 2011 and its LNG vessels were fully employed, with new contract signings for the Maersk LNG unit.
A Maersk official was quoted last month as saying the unit could be worth $1.2-$1.7 billion. Prices of $1.5-$2 billion have been mentioned in other media reports.
"We are pleased with the price. Due to long contracts, the value of the business is pretty stable," Maersk official Claus Hemmnigsen told Reuters. "The contracts depend little on market fluctuations. They have steady earnings over a longer period."