Flex LNG to Buy Five LNG Newbuildings

Oslo-listed ship owner and operator Flex LNG is looking to acquire a batch of five LNG newbuildings from affiliates of Geveran Trading, the company’s largest shareholder.

The vessels include three high-end MEGI LNG carriers currently under construction at Daewoo Shipbuilding and Marine Engineering (DSME) with scheduled delivery in 2020 and two high-end X-DF LNG carriers which are being built at Hyundai Samho Heavy Industries (HHI) with scheduled delivery in 2021.

Flex LNG informed that it is paying USD 180 million per vessel on a delivered basis, including supervision costs, plus USD 6 million for each of the DSME vessels for the addition of full reliquifaction systems.

In connection with the transaction, the company will launch a private placement of new ordinary shares for gross proceeds of USD 300 million. Net proceeds from the placement will be used to partially fund installments on the acquired ship and for working capital and general corporate purposes.

The vessel acquisitions are subject to the private placement being completed, Flex LNG said.