Canada’s Seapeak is boosting its gas shipping fleet through a $700m takeover of Denmark’s Evergas.
The former Teekay LNG, now owned by Stonepeak, will acquire the two companies comprising the operator — Greenship Gas Trust and Greenship Gas Manager — from France’s Jaccar Holdings in an all-cash deal.
Seapeak was one of three buyers in the running for the fleet of two VLECs and eight multigas/LNG carriers. More than 400 staff will transfer over.
The price is in line with independent broker evaluations.
All the ships are on fixed-rate time charters to Ineos and are capable of burning gas as fuel.
Evergas also controls six LPG carriers under leases ending in 2024.
The corporate headquarters are in Copenhagen and the operation is run from Singapore.
“Acquiring Evergas is another big step in Seapeak’s evolution as a leading owner and operator of liquefied gas carriers,” said Seapeak chief executive Mark Kremin.
“Just as we’re bullish on LNG, we’re also bullish on natural gas liquids (NGLs), especially given the even greener nature of NGLs.”
Kremin said Ineos is already a world leader in NGLs and is now growing in LNG.
CO2 business will be vital
“We are thrilled to be adding them as a key customer, further diversifying our portfolio,” he added.
“Together, Ineos and Evergas are vital to America’s liquefied gas export story and their collaboration to develop CO2 carrier trades will be vital to decarbonising Europe.”
Evergas has joined forces with shipowner Ultragas to form Dan-Unity to chase this market.
The company was put up for sale in February to help creditors recover debt after Jaccar principal Jacques de Chateauvieux stepped down in 2021.
Jaccar chairman Philippe Soulie said: “Evergas is the first of our prize assets to change hands, as per the plan agreed with our creditors, which consists of repositioning, over the next few years, our assets in more powerful and ambitious environments, allowing them to fully exploit their growth potential.
“With a leading operator such as Seapeak, successful in its core gas transportation business and sharing the same values of excellence in service, Evergas and its first-class operating team will have a bright future and promising new home.”
Steffen Jacobsen, CEO of Evergas, said the deal will “provide a solid platform on which we can continue to grow our businesses in NGLs and CO2, where we see outstanding potential for growth”.
Deal done by year-end
The sale is expected to close by the end of this year.
Deutsche Bank acted as exclusive financial adviser to Jaccar, which had debt of around €1bn ($1.02bn in today’s terms) at the end of 2019.
De Chateauvieux is a former principal of Bourbon Offshore, which was taken over by its banks in 2019.
Evergas was profitable last year and has what it calls a win-win partnership with Ineos, which Soulie called “a formidable development engine”.
Seapeak already has interests in 46 LNG carriers, 20 midsize LPG carriers, including two on order, and six multigas carriers.
Ownership in the vessels varies from 20% to 100%.
In addition, it owns 30% of an LNG regasification terminal.
In January, Stonepeak’s $6.2bn deal to take Teekay LNG private was closed.
As part of the deal, parent Teekay Corp received $641m.
