Bloomberg News

Maersk Sells LNG Ship Unit to Teekay, Marubeni for $1.4 Billion

October 12, 2011

Oct. 12 (Bloomberg) -- A.P. Moeller-Maersk A/S, Denmark’s largest company, agreed to sell its liquefied natural gas tanker unit to Teekay LNG Partners LP and Marubeni Corp. for $1.4 billion in cash.

The unit owns six LNG vessels and has 26 percent stakes in two additional ships. Five of the ships are operating under long-term leases with an average of 17 years left to run, Bermuda-based Teekay said in a statement. The other three are on short-term contracts.

“Maersk LNG does not in itself have the neccessary scale to significantly influence the overall development of the industry,” the Copenhagen-based company said in a statement. “The conclusion is that Maersk LNG would benefit from a different ownership.”

The venture between Teekay and Japanese trading company Marubeni will borrow $1.12 billion to finance the deal. The rest will be paid for in cash by the two partners, according to Teekay’s statement.

Teekay said the purchase will be accretive to the company’s cash flow.

Marubeni told Bloomberg on Oct. 5 it was bidding for Maersk LNG in a 50-50 partnership with Teekay LNG. Maersk was advised by Deutsche Bank on the transaction.

--Editor: Will Kennedy

To contact the reporters on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net; Gelu Sulugiuc in Copenhagen at gsulugiuc@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net -0- Oct/12/2011 10:19 GMT


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus