GasLog Buy STX Pan Ocean LNG Carrier
GasLog Ltd. has signed a memorandum of agreement to acquire the 'STX Frontier', a 2010-built, 153,600 cubic meter LNG carrier from Singapore- based company STX Pan Ocean LNG PTE. Ltd.
The intention is that GasLog (GLOG) will take over the vessel from STX Pan Ocean early in the fourth quarter of 2013 in Spain, which makes her well positioned to take advantage of the current tight supply of tonnage for this winter in the Atlantic.
Paul Wogan, GasLog CEO; said: "We are delighted to announce this acquisition. We believe this modern asset will provide great value for our shareholders based on the attractive purchase price and our expectations for the charter market going forward.
"The acquisition cost of the vessel is in the vicinity of USD 160 million, which we feel is a very attractive price. The opportunity to acquire the vessel at this price was a consequence of the well-publicized difficulties, which STX Pan Ocean has been encountering. The price reflected the ability of GasLog to acquire the ship at short notice and without a committed charter, hence enabling the vendor to use the funds positively as part of their own reconstruction. This speaks to the strength of the operation and financial platform, which the Company has created."
Simon Crowe, CFO; said, "Our current financial position and bank financing commitments should allow us to complete our newbuilding program and to fund this vessel without the need to issue additional GasLog common shares. As our portfolio mix develops and grows, it will allow us to be more innovative with our capital structure as we asses the different financial alternatives we have available to us. This ensures that we maximize value for our shareholders."
GasLog add that the transaction has been approved by the Korean Courts and the Board of Directors of GasLog, and remains subject to customary closing conditions, including satisfactory documentation.
The strength of the underlying business, with over $2.2 billion of contracted revenue, combined with our operational platform mean that we are well placed to take advantage of further opportunities and to optimize our charter portfolio in what we currently see as a tight short term market."
The transaction has been approved by the Korean Courts and the Board of Directors of GasLog, and remains subject to customary closing conditions, including satisfactory documentation.