Oslo Stock-listed shipowner Ocean Yield has struck a deal to buy infrastructure fund CVC DIF’s share in the French company Geogas LNG, providing an indirect economic interest of up to 34% in France LNG Shipping SAS (FLS).
Norway’s Ocean Yield revealed the news on Friday, mentioning that FLS owns a portfolio of LNG carriers on long-term charters and is 50/50 owned by NYK and Geogas LNG.
Six vessels are currently on the water with an average age of three years, with further two being delivered in 2024 and 2025.
Four additional newbuildings are expected to be novated to FLS at or around closing of the transaction and will be delivered in 2027.
All vessels are employed on long-term charters to tier-one investment grade-rated European energy companies, with an average contract duration of 10 years, or 14 years including extension options.
Ocean Yield estimates that the transaction will add around $840m to its Ebitda backlog.
The deal is expected to be closed during the second half of 2024, but certain customary conditions need to be fulfilled.
Andreas Røde, chief executive of Ocean Yield, said in a comment: “We are pleased to partner with NYK, Geogas Maritime and Access Capital Partners for our first transaction in the LNG segment.
“FLS controls a fleet of modern LNG carriers with a low carbon footprint and long-term charters to investment grade-rated counterparties.”
