Norwegian owner Awilco LNG has invested $7m in Golar LNG’s spinoff Cool Company (CoolCo) through its recently closed an upsized private placement from $250m to $275m. The Oslo-listed company has been in return allocated 700,000 shares in the new LNG carrier player majority backed by Israeli billionaire Idan Ofer through Eastern Pacific Shipping (EPS).
“Awilco LNG support consolidation of the LNG market and look forward to continuing working with CoolCo,” the company said, adding that it intends to propose a dividend in line with the size of the investment in CoolCo to the annual general meeting scheduled in May 2022. Awilco LNG owns two 2013-built gas carriers.
Following the equity raise, CoolCo will have an initial equity value of $400m. Eastern Pacific Shipping (EPS) will be the largest shareholder with a $150m investment corresponding to 38% shareholding, Golar will own 31% and the public will own 31% of the company. Proceeds from the private placement, together with the bank loan, will be used to fund the acquisition of eight LNG carriers from Golar and for CoolCo’s working capital and general corporate purposes.
The shares will be listed on the Norwegian OTC immediately following the completion of the private placement. CoolCo will then apply to list the shares of the company on Euronext Growth Oslo during February 2022 and will also target an additional listing on an internationally recognised stock exchange during the same year.