The last time I wrote about Golar LNG [[GLNG]], they were discussing spinning off the development side of their business from the money making side. The press release above makes the move formal. A new subsidiary will be formed called Golar LNG Energy Limited. It will hold the assets that are currently “such part of its asset portfolio which is not employed on long term charters”.
The assets to be transferred are on the books for $847 million and $487 million in debt shall tag along. “Energy” will issue share to pay the balance to Golar plus $150 million in private placement. Once the private placement is complete, the shares of “Energy” will be listed on some exchange, somewhere, possibly Oslo.
The remaining part of Golar is intended to have a stable revenue stream with a high dividend paying ability. Golar LNG will still own approximately 70% of the energy subsidiary. If this spinoff allows Golar to significantly increase the distribution it will be a positive for shareholders.
Golar LNG splitting up operations
http://www.golarlng.com/Stock_Exchange_Releases/Press_Releases.html
The last time I wrote about Golar LNG [[GLNG]], they were discussing spinning off the development side of their business from the money making side. The press release above makes the move formal. A new subsidiary will be formed called Golar LNG Energy Limited. It will hold the assets that are currently “such part of its asset portfolio which is not employed on long term charters”.
The assets to be transferred are on the books for $847 million and $487 million in debt shall tag along. “Energy” will issue share to pay the balance to Golar plus $150 million in private placement. Once the private placement is complete, the shares of “Energy” will be listed on some exchange, somewhere, possibly Oslo.
The remaining part of Golar is intended to have a stable revenue stream with a high dividend paying ability. Golar LNG will still own approximately 70% of the energy subsidiary. If this spinoff allows Golar to significantly increase the distribution it will be a positive for shareholders.