In what Chairman Peter Livanos calls “a transformative next step,” Piraeus, Greece, based LNG carrier specialist GasLog Ltd. reports that it has entered into an agreement and plan of merger with BlackRock’s Global Energy & Power Infrastructure team), which is focused on essential, long-term infrastructure investments in the energy and power sector.
Under the agreement, GEPIF will acquire all of the outstanding common shares of GasLog that are not held by certain existing shareholders of GasLog, including Blenheim Holdings Ltd., which is wholly owned by the Livanos family, and a wholly owned affiliate of the Onassis Foundation, in exchange for $5.80 in cash per common share.
The $5.80 per share acquisition price 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. On completion of the transaction, Blenheim Holdings and the Onassis Foundation affiliate will continue to hold approximately 55% of the outstanding common shares of GasLog and GEPIF will hold approximately 45%.
Promptly after completion of the transaction, the common shares of GasLog will be delisted from the New York Stock Exchange.
“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 Livanos. “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.”
“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.”