New York-listed LNG carrier specialist owner GasLog has entered into an agreement and plan of merger with BlackRock’s Global Energy & Power Infrastructure team (GEPIF) that will see BlackRock acquire all outstanding shares of GasLog, with the exception of those held by the Livanos family and Onassis Foundation.
The proposed share acquisition price of $5.80 is at a 17% premium to the closing price of GasLog shares last Friday, and a 22% premium to the average share price over the last 30 days.
The price was described as a “good deal” for investors by Cleaves Securities yesterday.
“A good deal for current shareholders in our view, ahead of an expected trough for LNG shipping until 2024,” Joachim Hannisdahl, Cleaves’s head of research, tweeted.
Upon completion of the transaction, GasLog will be delisted from the New York Stock Exchange and GEPIF will hold a stake of around 45% of the company, while the Livanos family and Onassis Foundation will continue to hold around 55%. In a January presentation, the company said that the Livanos family owned around 41% of the company while the Onassis Foundation had a stake of around 12%.
“This transaction is a transformative next step for GasLog, offering shareholders an immediate and considerable premium for their shares and allowing for access to growth capital currently absent in the public equity markets,” said Peter Livanos, chairman of GasLog. “I am delighted to be partnering with BlackRock’s GEPIF team, an ideal complement to our management team, given our shared values of safety, sustainability and operational excellence. BlackRock’s GEPIF team has a track record of success in supporting energy infrastructure businesses such as ours. I am confident that our employees offshore and on shore, customers and lending relationships will enjoy the many and substantial benefits of this partnership.”
The transaction is expected to close in the second quarter of 2021.