Greece-based LNG shipping company GasLog (NYSE: GLOG) has entered into an agreement to merge with a unit of the world’s largest asset management firm BlackRock, resulting in the NYSE-listed company going private.
Under the terms of the deal, BlackRock’s Global Energy & Power Infrastructure team will acquire all of the outstanding common shares of GasLog, not including certain “Rolling Shareholders”, for $5.80 in cash per common share. The company said the offer represents a 17% premium to the closing price of GasLog’s common shares on February 19, 2021 and a 22% premium to the volume weighted average share price of GasLog’s common shares over the last 30 days.
Upon completion of the transaction, the Rolling Shareholders will continue to hold approximately 55% of the outstanding common shares of GasLog with BlackRock’s team holding the remaining 45%. GasLog’s common shares will be delisted from the New York Stock Exchange. Rolling Shareholders include Blenheim Holdings Ltd., which is wholly owned by the Livanos family, and a wholly owned affiliate of the Onassis Foundation.
An independent “Special Committee” has unanimously recommended that the Board of Directors of GasLog approve the merger.
“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 Peter G. Livanos, Chairman of GasLog. “I am delighted to be partnering with BlackRock’s GEPIF team, an ideal complement to our management team, given our shared values of safety, sustainability and operational excellence. BlackRock’s GEPIF team has a track record of success in supporting energy infrastructure businesses such as ours. I am confident that our employees offshore and on shore, customers and lending relationships will enjoy the many and substantial benefits of this partnership.”
The merger is expected to close in the second quarter of 2021 and is subject to approval GasLog shareholders, including by a majority of non-Rolling Shareholders, as well as certain customary closing conditions.
GasLog’s preferred stock and shares of GasLog Partners LP (NYSE:GLOP) are not impacted and will continue to trade on the New York Stock Exchange.
“We are excited to partner with GasLog’s world-class management team to facilitate the company’s strong capabilities in meeting the growing global demand for LNG, particularly in Asia, through its fleet of modern, efficient vessels,” said Mark Florian, Head of BlackRock’s Global Energy & Power Infrastructure team. “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.”
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