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Höegh agrees acquisition of FSRU Höegh Grace

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LNG Industry,


Höegh LNG Partners LP has announced an agreement to acquire, from a subsidiary of Höegh LNG Holdings Ltd., the remaining 49% ownership interest in Höegh LNG Colombia Holding Ltd., the sole owner of Höegh LNG FSRU IV Ltd. and Höegh LNG Colombia SAS, the entities that own and operate the FSRU Höegh Grace, that it does not already own.

The purchase price for the acquisition will be US$85.9 million.

HMLP intends to settle the purchase price with a combination of cash on hand and a drawing under its existing revolving credit facility. The purchase price will be subject to certain post-closing adjustments for net working capital.

The acquisition is expected to be completed by the beginning of January 2018 and is subject to customary closing conditions.

The partnership purchased its initial 51% interest in Grace Holding in January 2017.

The Board of Directors of the partnership and the Conflicts Committee have approved the acquisition and the purchase price. The Conflicts Committee retained an outside financial advisor and outside legal advisor to assist with its evaluation of the acquisition and the purchase price.

Management anticipates recommending to the board a distribution increase with respect to the quarter ending 31 March 2018 to reflect the acquisition. Any such increase would be conditioned upon, among other things, approval by the board, the timely closing of the acquisition and the absence of any material adverse developments or potentially attractive opportunities that would make such an increase inadvisable.

Read the article online at: https://www.lngindustry.com/floating-lng/16112017/hegh-agrees-acquisition-of-fsru-hegh-grace/

 

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