Teekay LNG Partners and Stonepeak have entered into an agreement and plan of merger in a $6.2 billion transaction.
Under the agreement, investment vehicles managed by Stonepeak will acquire (a) all the issued and outstanding common units representing limited partner units in Teekay LNG, including approximately 36 million common units owned by Teekay Corporation, and (b) 100 percent of Teekay’s ownership in Teekay LNG’s general partner, Teekay GP LLC, which includes an economic ownership interest equivalent to approximately 1.6 million Teekay LNG common units, for $17 per common unit or common unit equivalent in cash, representing an enterprise value of $6.2 billion, including consolidated and proportionate joint venture net debt, and $1.5 billion in common unit equity value. The $17 per unit acquisition price represents a premium of 8.3 percent to the closing price of Teekay LNG’s common units on October 1, 2021, and premiums of 12.3 percent and 17.5 percent to the volu