Keppel to acquire 10% stake in Golar Hilli

In line with the world’s first FLNGV conversion project under Golar.

Keppel Corporation Limited announced that KSI Production Pte Ltd, an indirect wholly-owned subsidiary of the Company, has entered into a sale and purchase agreement to acquire 50 ordinary shares, representing 10% shareholding interest in the total registered issued share capital of Golar Hilli Corporation from Golar GHK Lessors Limited at a consideration of US$1 per acquired share.

Golar Hilli is the owner of the Moss LNG carrier HILLI which is scheduled to be converted into a Floating Liquefaction Vessel (FLNGV) by Keppel Shipyard.

In a media release, Keppel said that the acquisition strengthens the alignment of strategic interests between Keppel Shipyard Limited and Golar LNG Limited, and reflects Keppel's confidence in the prospects of Golar Hilli, the world's first FLNGV conversion project.

The aggregate cash consideration of US$50 was arrived at on a willing buyer willing seller basis, taking into account the book value and net tangible asset value of the Acquired Shares, being US$50 as at 1 September 2014, and was funded through the internal working capital of KSI. 

As part of the Acquisition, KSI will also be extending a shareholders' loan of US$21,688,029 to Golar Hilli, representing 10% of the total amount of shareholders' loan extended to Golar Hilli, taking into account Golar Hilli's capital expenditure.