US-based New Fortress Energy (NFE) has completed its acquisition of Hygo Energy Transition and Golar LNG Partners (GMLP).
Hygo Energy Transition is a joint venture equally owned by Golar LNG Limited (GLNG) and Stonepeak Infrastructure Fund II Cayman, a fund managed by Stonepeak Infrastructure Partners.
NFE purchased the outstanding shares of Hygo by issuing 862,745 shares and $50m in cash to GLNG as well as 12,745,098 shares and $530m in cash to Stonepeak.
NFE also purchased all the outstanding common units of GMLP for $3.55 per common unit in cash, as well as GMLP’s general partner for an equivalent consideration.
The deal values GMLP at a $1.9bn enterprise value and $251m common equity value.
As part of the transaction, Golar received $81m in cash for the sale of its 32% interest in GMLP.
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By GlobalDataNFE chairman and CEO Wes Edens said: “The addition of the Hygo team, together with a great portfolio of world-class LNG ships and operators, enhances our efforts to bring more clean and affordable energy around the world.
“With this acquisition, we are now a leading gas and power provider in a large and fast-growing market and have become one of the world’s premier energy transition companies.”
GLNG chairman Tor Olav Troim said: “The NFE transactions have simplified the group structure and crystalised part of the value of our downstream business.
“Golar has materially strengthened its balance sheet as a result of the NFE transactions. This coincides with rising energy prices, and with a global focus on cleaner energy.
“Golar is now in a strong position to use its unique FLNG capability and experience to produce low-cost LNG and meet this rapidly expanding opportunity. This can take place through tariff-based production for oil and gas companies, but can also be achieved through direct gas ownership.”
Last January, NFE secured an $800m loan facility from certain funds and accounts managed by affiliates of Apollo Global Management.
