Monaco-based GasLog Partners' board of directors has approved an agreement to acquire the entire stake in the Solaris liquefied natural gas (LNG) carrier from its parent company GasLog for a sum of $185.9m.

The GasLog board of directors and GasLog Partners’ conflicts committee have also approved the deal, which includes $1m for positive net working capital balances that will be transferred with the vessel.

GasLog Partners aims to fund the acquisition via cash on hand and the assumption of Solaris’ existing $117m debt.

The proposed deal is expected to close by the fourth quarter of this year, subject to certain customary closing conditions.

GasLog Partners seeks to fulfil its strategy of increasing cash distributions through dropdown and third-party acquisitions with the new arrangement.

The company also expects to add around $20m to its earnings before interest, tax, depreciation and amortisation (EBITDA) within the first 12 months of the deal's completion.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
"The acquisition will expand the Partnership's fleet to 12 wholly owned LNG carriers, and increase our contracted days to approximately 90% for 2018 and 72% for 2019."

GasLog Partners CEO Andy Orekar said: “Solaris represents the ninth LNG carrier the partnership will have acquired from GasLog since our initial public offering (IPO), and its multi-year charter to Shell will provide incremental visible cash flows.

“The acquisition will expand the Partnership's fleet to 12 wholly owned LNG carriers, increase our contracted days to approximately 90% for 2018 and 72% for 2019, and significantly grow our contracted EBITDA.”

Solaris is a tri-fuel diesel electric LNG carrier that was originally built in 2014, which features a capacity of approximately 155,000m³.

The ship has been placed on a multi-year time charter with a fully owned subsidiary of Royal Dutch Shell (Shell) through to June 2021.

Shell also owns two consecutive extension options for the vessel, which if exercised are set to extend the charter period for five or ten additional years.