EMEA News
Exmar And Fredriksen Combine Assets in New LNG Venture
Antwerp-based Exmar NV has formed a new liquefied natural gas (LNG) joint venture with Norwegian billionaire John Fredriksen, which will operate assets worth roughly $2.3 billion, Exmar has announced.
According to reports, Exmar will transfer its LNG assets to Fredriksen's Flex LNG Ltd. in exchange for 323.7 million new shares, giving Exmar a 64.6 percent stake in the company.
The new company will be renamed to Exmar LNG, leaving Fredriksen-controlled Geveran Trading Co. Ltd., who was formerly Flex LNG's largest shareholder, to own 30.7 percent.
"Since completing the restructuring of the Company it was clear that the next step was to create strong partnerships with industry players to grow the company into a major force in the LNG value chain," said Flex LNG Chairman of the Board David McManus.
The new company's assets include five floating storage and regasification units, two floating liquefaction units and six LNG carriers, four of which are currently under construction, said Exmar.
"This new venture will enable us to create shareholders' value for the long term and will allow us to continue to grow in all segments of the LNG value chain," said Exmar CEO Nicolas Saverys.
"We are deeply committed to making this a success for all stakeholders and existing as well as
future customers."
The deal is expected to close in the third quarter of 2015.
Reports say that the company is planning to issue new shares within 12 months, according to Exmar CFO Miguel de Potter.
Saverys is reportedly expected to stay on with the new company as chairman of the board, with Bart Lavent, Exmar's managing director for LNG Upstream & Downstream, expected to serve as CEO.
Earlier this year, it was reported that Exmar had decided against investing in a LNG bunkering vessel at the Port of Antwerp due to low demand.
