A proposed USD 2.3 billion joint venture between Belgian liquefied natural gas (LNG) carrier owner and operator Exmar and John Fredriksen’s Geveran and Flex LNG has been shelved as the parties could not agree on the terms, Exmar said in a statement.
Back in July, Exmar and Geveran had agreed to pool their LNG assets and infrastructure under Flex LNG, in exchange for new shares in Flex LNG. According to the initial agreement, Exmar would have owned 64.6 per cent of the outstanding shares and votes in the new company, and Geveran would have controlled 30.7 per cent of the outstanding shares and votes.
Exmar would have also had the right to trigger an obligation to make a mandatory offer for the remaining shares in Exmar LNG within four weeks of the completion of the transaction.
The new company was expected to start operating under the name Exmar LNG in the third quarter of 2015, and it would have operated six LNG carriers, four of which are under construction, as well as five floating storage and regasification units (FSRU), and two floating liquefaction units (FLNG).