Höegh LNG Partners halts share purchase in two FSRUs from MOL

Höegh LNG Partners decided to suspend the acquisition of 23.5 percent in FSRUs Neptune and GDF Suez Cape Ann from Mitsui O.S.K. Lines.

At the end of last month, the partnership signed a term sheet to acquire 23.5 percent of the shares in each of the two entities owning the FSRU Neptune and the FSRU GDF Suez Cape Ann, as well as 23.5 percent of the outstanding shareholder loans from MOL aggregating $1.5 million.

The acquisition was expected to close by September 30, 2017, however, the charterer of the two floating storage and regasification units raised certain performance claims with respect to the vessels.

Although the partnership would be indemnified by its sponsor, Höegh LNG, for its share of the cash impact of any settlement with the charterer with respect to such claims, the partnership has informed MOL of its intention to suspend the Acquisition pending further resolution of this matter, Höegh LNG Partners’ statement reads.

Both vessels are owned by Höegh LNG Partners (50 percent), MOL (48.5 percent) and Tokyo LNG Tanker (1.5 percent), and are under a long-term charter with Engie.

The closing of the acquisition still remains subject to the execution of a definitive purchase agreement and final board approvals.