Singapore's Osprey Maritime said on Monday it agreed to sell its liquefied natural gas (LNG) operations to new subsidiary Golar
LNG for US$635 million as part of a restructuring exercise.
The marine and chartering services provider said in a statement the disposal was in line with the proposal by World Shipholding Ltd, its controlling shareholder, to reorganize and consolidate all of its LNG interests into Golar LNG
Osprey said this was being done "with the view to a possible flotation of (Golar) in Norway and the United States or such other means of strengthening the capital base of the LNG operations
The sale also gives Osprey the opportunity to restructure its LNG assets and to repay existing debts.
World Shipholding, a global energy transport giant controlled by Norwegian shipping magnate John Fredricksen, took over Osprey late last year. Osprey shares were de-listed from the Singapore Exchange on May 15.
Golar, a gas transport venture set up by Fredriksen this month, raised $280 million in a private placement
to fund the acquisition of six LNG carriers from Osprey and provide downpayments for other tankers.
Osprey said there would be no material financial impact from the disposal of the LNG business
on its issued and paid-up share capital or on the net tangible assets, net gearing ratio and earnings per share of the group.