FLEX LNG Ltd has announced that it is contemplating entering into a transaction to acquire five 5th generation LNG newbuildings.
The five vessels will consist of three high-end MEGI LNG carriers and two high-end X-DF LNG carriers, and will be acquired from affiliates of Geveran Trading Co. Ltd, the company’s largest shareholder. The MEGI carriers are currently under construction at Daewoo Shipbuilding and Marine Engineering Co. Ltd (DSME), and are scheduled for delivery in 2020. The X-DF carriers, meanwhile, are under construction at Hyundai Samho Heavy Industries Co. Ltd (HHI), and are scheduled for delivery in 2021.
According to the statement, each vessel would be purchased for US$180 million on a delivered basis, including supervision costs, plus US$6 million for each of the DSME vessels for the addition of full reliquefaction systems. 30% of the purchase price is payable within three days from the receipt of the proceeds from the private placement, and the remaining part of purchase price is payable upon delivery of the respective vessel. The acquisitions of the vessels are subject to the private placement being completed.
FLEX LNG claims that, in connection with the transaction, it is also contemplating a private placement of new ordinary shares for gross proceeds of the NOK equivalent of US$300 million. The subscription price for the offer shares will be determined by the board of the company based on an accelerated bookbuilding process. The private placement is directed towards investors subject to, and in compliance with, applicable exemptions from relevant prospectus or registration requirements.