U.S. Markets open in 6 hrs 44 mins

Golar LNG (GLNG) & Stonepeak Reach Agreement to Sell Hygo

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Golar LNG Limited GLNG and Stonepeak Infrastructure Fund II, a fund managed by Stonepeak Infrastructure Partners (Stonepeak), have entered into a definitive agreement to sell Hygo Energy Transition Ltd. (Hygo) to New Fortress Energy NFE. Hygo is a 50-50 joint venture between Golar LNG Limited, and the funds and entities managed by Stonepeak.

Per the merger agreement, New Fortress Energy will acquire all of the outstanding shares of Hygo for 31.4 million of its own shares and $580 million in cash. The transaction has an enterprise value of $3.1 billion and an equity value of $2.18 billion. Per the deal, Golar LNG Limited, which carries a Zacks Rank #4 (Sell), will receive 18.6 million shares of New Fortress Energy and $50 million in cash, while Stonepeak will receive 12.7 million New Fortress Energy shares and $530 million in cash. Subject to customary closing conditions, the transaction is expected to close in the first half of 2021.

Additionally, New Fortress Energy, carrying a Zacks Rank #3 (Hold), will acquire Golar LNG Partners LP in a deal with $1.9 billion enterprise value and $251 million equity value. For this transaction, New Fortress Energy will pay $3.55 per common unit in cash. This deal is also expected to close in the first half of this year, subject to regulatory approvals and customary closing conditions.

Golar LNG Limited Price

Golar LNG Limited Price
Golar LNG Limited Price

Golar LNG Limited price | Golar LNG Limited Quote

Key Picks

Some better-ranked stocks in the broader Transportation sector are ArcBest Corp. ARCB and Herc Holdings HRI, both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of ArcBest and Herc Holdings have gained more than 58% and 99% in the last six months, respectively.

Legal Marijuana: An Investor’s Dream

Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.

Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.

Download Marijuana Moneymakers FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ArcBest Corporation (ARCB) : Free Stock Analysis Report
 
Golar LNG Limited (GLNG) : Free Stock Analysis Report
 
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
 
New Fortress Energy LLC (NFE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research