Flex LNG to buy five newbuilds

Flex LNG to buy five newbuilds
Image courtesy of Flex LNG

Oslo-listed Flex LNG is eyeing an acquisition of five LNG newbuilds currently under construction at two South Korean shipyards for affiliates of Geveran Trading.

The company controlled by billionaire John Fredriksen and an emerging player in the LNG shipping business said in its statement the contemplated purchase would include three MEGI LNG carriers currently under construction at Daewoo Shipbuilding and Marine Engineering (DSME) and two high-end X-DF LNG carriers currently under construction at Hyundai Samho Heavy Industries.

DSME is scheduled to deliver the trio in 2020 with Hyundai Samho set to deliver its vessels in 2021.

Flex LNG said the purchase price is at $180 million per vessel with an additional $18 million for the DSME vessels as the company intends to equip them with full reliquefaction systems.

The company intends to pay for the vessels with the proceeds of a private placement it is planning. Namely, Flex LNG intends to muster a sale of shares worth around $300 million.

The private placement is directed towards investors and the net proceeds will be used to partially fund installments on the acquired vessels and for working capital and general corporate purposes.

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