OCTOBER 11, 2018 — Flex LNG Ltd. (OSE: FLNG) has completed a private placement raising gross proceeds of the NOK equivalent of $300 million. The private placement was significantly oversubscribed. Geveran Trading Co, the company’s largest shareholder, has been allocated 57,646,316 offer shares for approximately $100 million, and will retain a 44.6% ownership in the company following the private placement.
The private placement positions Flex LNG Ltd. to go ahead with a contemplated acquisition of five fifth generation LNG newbuildings under construction in South Korea from affiliates of Geveran.
Three of the newbuilds are under construction at Daewoo Shipbuilding and Marine Engineering Co. Ltd. (DSME) with scheduled delivery in 2020 and have MAN Energy Solutions ME-GI engines. The other are under construction at Hyundai Samho Heavy Industries Co., Ltd. with scheduled delivery in 2021 and have WinGD X-DF engines.
The vessels will be acquired at a purchase price of $180 million each on a delivered basis, including supervision costs, plus $6 million for each of the DSME vessels for the addition of full reliquefaction systems