Exmar LNG Ltd formed

Exmar has recently announced that it has agreed a transaction with Flex LNG and Geveran Trading Co. Ltd whereby Geveran’s LNG assets and Exmar’s LNG assets and LNG Infrastructure will be added to Flex’s in return for new shares in Flex LNG.

Integrating liquefaction, shipping and regasification assets

Upon the transaction’s completion, which is expected to be in 3Q15, the collaborated company will be known as Exmar LNG Ltd. The agreement is, however, subject to satisfaction of certain conditions, including satisfactory due diligence, agreement on definitive transaction documents, shareholder approvals, receipt of all stakeholders approvals, and receipt of all regulatory and financial institutions approval.

Exmar LNG Ltd will be integrating liquefaction, shipping and regasification assets, effectively covering the full spectrum – from small scale to large scale floating LNG (FLNG) infrastructure solutions. The company intends to finance growth with cash generated from existing projects, private and public debt and potentially new equity.

When Exmar LNG Ltd is officially formed, the company will have an estimated enterprise value of approximately US$2.3 billion and an equity value of approximately US$823.3 million. Exmar LNG Ltd will have interests in:

• Six LNG carriers, which will include main engine gas injection propulsion systems.
• Five floating storage and regasification barges.
• Two floating liquefaction units, which are currently under construction.
• A total of 80 years of combined firm time charters with reputable companies.
• Five FLNG and four FSRU exclusivity agreements.

A new combination of strength

Nicolas Saverys, Chief Executive Officer of Exmar, commented: “We are excited about this new combination of strength with Flex LNG and Geveran. This new venture will enable us to create shareholders’ value for the long term and will allow us to continue to grow in all segments of the LNG value chain. We are deeply committed to making this a success for all stakeholders and existing as well as future customers.”

David McManus, Chairman of the Board of Directors at Flex LNG, said: “Since completing the restructuring of the company it was clear that the next step was to create strong partnerships with industry players to grow the company into a major force in the LNG value chain. This process started with the investment in the company by Geveran and I believe that now combining our efforts with Exmar, a company that has been at the forefront of the technological developments for decades, positions the company to maximise shareholders’ value in the long term.”

Edited from press release by Callum O'Reilly  

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/03072015/exmar-flex-lng-and-geveran-lng-to-create-an-integrated-lng-company-988/