Flex LNG Eyes Funds for MEGI LNG Carrier Duo

DSME John Fredriksen-controlled Flex LNG is looking to secured funds for the purchase of two MEGI LNG carriers currently under construction at South Korean Daewoo Shipbuilding and Marine Engineering (DSME). The funds would be secured through a private placement, raising gross proceeds of NOK 1.07 billion (USD 125 million) through the placing of over 89.4 million new shares at a subscription price of NOK 12 per share. The total consideration to be paid for the acquisition of the vessels, which are scheduled for delivery in the second and third quarters of 2019, is USD 180 million a piece. Of this amount, 20% is payable within three days from a successful completion of the private placement and the remaining part of the contract price is payable upon delivery of the carriers, the company informed. Completion of the private placement is conditional upon the necessary corporate resolutions in the company being made, including approval from the company’s shareholders at an extraordinary general meeting which will be held in mid-May, and the new shares having been fully paid and legally issued. Flex LNG informed that the offering will be cancelled if the conditions are not fulfilled. In mid-February, the company unveiled the plans to buy the LNG carriers from the affiliates of Geveran Trading (Geveran), the company’s largest shareholder.