- Discussing surprise sale of Teekay LNG Partners to private equity firm Stonepeak.
- Estimated sales proceeds of almost $640 million will enable the company to redeem $250 million in high-yield debt well ahead of maturity.
- Updating net asset value estimates. Pro forma net cash position calculates to $332 million.
- Management's statement in the press release hints to upcoming changes in the company's business strategy. A push into renewable energy might be in the cards.
- Uncertainty regarding the company's future strategic direction has caused the discount to (pro forma) NAV to widen. Speculative investors might consider using this opportunity to scale into the shares but should remain wary of the stock's correlation to oil prices.
For further details see:
Teekay Corporation - Surprise Sale Of Teekay LNG Partners Likely Prelude To Strategic Reboot