Höegh LNG swaps ownership obligation with option to buy 100% of the STX Frontier
Reference is made to Höegh LNG Holdings Ltd.'s (Höegh LNG) stock exchange notice dated 26 September 2012, where Höegh LNG informed of the declaration to buy 50% of the STX Frontier, said in the company's press release.
Höegh LNG and STX Pan Ocean (STXPO) have renegotiated the initial agreement and reached a new agreement whereby Höegh LNG foregoes the right and obligation to take delivery of 50% of the vessel in exchange for an option to buy 100% of the vessel. The option expires in 2Q 2013.
STXPO confirmed today that the transaction was approved by its board of directors.
President and CEO Sveinung J.S. Støhle says in a comment: "This new arrangement provides Höegh LNG with increased flexibility in a market which is moving slower than initially expected. We still believe there are interesting possibilities for employment of the STX Frontier, but the obligation for Höegh LNG to buy in to the ownership of the vessel is now swapped with the opportunity to do so, should the commercial parameters fall into place."
About Höegh LNG
Höegh LNG is a provider of floating LNG infrastructure services, offering regasification, transportation and production services under long-term contracts. The company operates a fleet of six LNG transportation vessels and two floating storage and regasification units (FSRUs). In addition, Höegh LNG has four new FSRUs on order and has developed a solution for floating LNG production (FLNG). Höegh LNG is a Bermuda based company with established presence in Oslo, Singapore, London and Tampa. The Company employs about 80 office staff and about 350 sea farers.
