International owners and operators of liquefied natural gas (LNG) carriers GasLog and GasLog Partners have entered into a definitive merger agreement.
Following the offer announced in January 2023 , the parties now signed the agreement pursuant to which GasLog will acquire all of the outstanding common units of GasLog Partners not beneficially owned by GasLog.
GasLog said it will acquire the outstanding common units of GasLog Partners not beneficially owned by GasLog for an overall consideration of $8.65 per common unit in cash, consisting in part of a special distribution by GasLog Partners of $3.28 per common unit in cash that will be distributed to the GasLog Partner’s unitholders in connection with the closing of the transaction and the remainder to be paid by GasLog as merger consideration at the closing of the transaction.
As disclosed, the Board of Directors of GasLog Partners unanimously approved the merger agreement and the transaction as per the conflicts committee’s recommendation.
The transaction is expected to close by the end of the third quarter of 2023, subject to the approval of the transaction by holders of a majority of the common units of GasLog Partners and the satisfaction of certain customary closing conditions.
GasLog owns 30.2% of the common units of GasLog Partners and has entered into a support agreement with the latter committing to vote its common units in favour of the merger.
GasLog’s consolidated fleet consists of 38 LNG carriers (33 on the water, four under construction and one vessel undergoing conversion into a floating storage and regasification unit ).
GasLog Partners’ fleet counts eleven wholly-owned LNG carriers as well as three vessels on bareboat charters, with an average carrying capacity of approximately 159,000 cbm.