Teekay Corp sells Australian operations to Teekay Tankers for $65m

New York-listed Teekay Corporation Ltd. has agreed to sell its Australian operations (Teekay Australia), which include ship management services companies primarily servicing the government of Australia, to Teekay Tankers for $65m in cash.

Teekay has also agreed to sell to Teekay Tankers all management services companies not currently owned by Teekay Tankers at their net working capital value.

This move was highlighted in the company’s third quarter earnings report in which Teekay said that in October it agreed to sell Teekay Australia to Teekay Tankers for $65m in cash plus any working capital adjustment.

Teekay Australia provides crew management, technical management, asset management, and procurement services primarily to the Australian government, as well as to other oil and gas customers in Australia.

Furthermore, Teekay agreed to sell to Teekay Tankers all management service companies not currently owned by Teekay Tankers for a purchase price equal to their net working capital value.

“Following the completion of these acquisitions, Teekay Tankers will employ directly all of the employees supporting its businesses and be the operating platform within the Teekay Group through which Teekay Parent engages in the shipping business,” the company revealed in its third quarter earnings results.

These transactions are expected to be financialised by December 31, subject to customary closing conditions.

“Over the past few years, the Teekay Group has taken several important steps to streamline the organization, including the recent changes to our group management team structure. In addition, we have now agreed to sell Teekay Australia – Teekay’s asset-light ship management operations primarily servicing the Australian Government – to Teekay Tankers for $65 million in cash, as well as transfer all remaining Teekay management services companies to Teekay Tankers. With these planned transactions, Teekay Tankers will become the sole operating platform within the Teekay Group and Teekay will focus on managing its controlling interest in Teekay Tankers,” commented Kenneth Hvid, Teekay’s president and CEO.

“Teekay posted strong earnings during the third quarter of 2024, as rates for Teekay Tankers’ mid-sized tanker fleet remained historically strong for what is typically the weakest quarter of the year,” Hvid added.