- Company surprisingly sells its stakes in busted IPO Hygo Energy Transition and Golar LNG Partners to peer New Fortress Energy.
- In aggregate, the transactions will provide approximately $130 million in much-needed liquidity. In addition, the company will receive 18.6 million shares of New Fortress Energy.
- With the perceived growth engine Hygo now sold, investors will demand management to provide its vision for the remaining business going forward.
- Recent rise in LNG prices might help to find a solution for the LNG carrier fleet after a proposed spin-off failed two years ago. Unfortunately, most of the available days for 2021 have already been fixed at lower rates.
- With the stake in New Fortress Energy representing 80% of Golar LNG's market capitalization, expect the company's share price to remain closely correlated to NFE for the foreseeable future.
For further details see:
Golar LNG: Mixed Feelings Towards Surprise Sale Of Hygo Energy Transition And Golar LNG Partners