BlackRock Buys up 45% of GasLog
Private equity firm BlackRock's Global Energy & Power Infrastructure (GEPIF) team is to buy all the outstanding shares in LNG shipowner Gaslog, the Monaco-based company said February 22. It gives GEPIF about 45% in the new company, which will be delisted from the New York stock exchange.
The $5.80/share price is 17% more than the closing price on February 19 and 22% higher than the volume-weighted average price over the last 30 days.
“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 its chairman Peter Livanos. He added: "BlackRock’s GEPIF team has a track record of success in supporting energy infrastructure businesses such as ours."
BlackRock said it was looking forward to working with GasLog and "meeting the growing global demand for LNG, particularly in Asia, through its fleet of modern, efficient vessels.... As the global shift to more environmentally-friendly energy sources such as natural gas and renewables from coal and other fuels continues, we are pleased to invest in an infrastructure business supported by long-term contracts with leading energy companies and that supports the global energy transition.”
The transaction is expected to close in the second quarter of 2021, subject to shareholders' approval.