Posted on January 14, 2021
New York City-based New Fortress Energy has lined up a $5 billion deal to acquire Hygo Energy Transition and Golar LNG Partners.
New Fortress Energy, an energy infrastructure company, will become the leading gas-to-power company in Brazil.
With the acquisition of Hygo, a joint venture between Golar and Stonepeak Infrastructure Partners, it will acquire an operating floating storage and regasification unit (FSRU) terminal and a 50 per cent interest in a 1500 megawatt power plant in Sergipe, Brazil. It will also acquire two other FSRU terminals with 1200 megawatt of power in advanced stages in Brazil. Hygo’s fleet comprises a newbuild FSRU and two operating LNG carriers.
With the transaction of Golar LNG Partners, New Fortress Energy will also acquire a leading owner of FSRUs and LNG carriers as well as a pioneer in floating liquefaction technologies.
The addition of their fleet of six FSRUs, four LNG carriers and a 50 per cent interest in Trains 1 and 2 of the Hilli FLNG, is expected to support both New Fortress Energy’s existing facilities and international project pipeline.
Chairman and CEO of NFE Wes Edens said: “With a strong presence in Brazil and a world-class LNG shipping business, Hygo and GMLP are excellent additions to our efforts to accelerate the world’s energy transition. The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fast-growing market. With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline”.
Golar LNG chairman Tor Olav Troim added: “The consolidation of two of the entrepreneurial LNG downstream players gives the company improved access to capital and creates a unique world-leading energy transition company which Golar shareholders will benefit from being a part of going forward”.
Under the agreement with Hygo, New Fortress Energy will acquire all of the outstanding shares of Hygo for 31.4 million shares of NFE Class A common stock and $580 million in cash.
The transaction is valued at a $3.1 billion enterprise value and a $2.18 billion equity value. GLNG will receive 18.6 million shares of NFE Class A common stock and $50 million in cash and Stonepeak will receive 12.7 million shares of NFE Class A common stock and $530 million in cash.
The closing of the transaction is expected to occur in the first half of 2021.
Under the agreement with GMLP, NFE will acquire all of the outstanding common units of GMLP for $3.55 per common unit in cash. The transaction is valued at a $1.9 billion enterprise value and $251 million common equity value. The closing of the transaction is expected in the first half of 2021.