LNG Ship at Sea

WFW advises Teekay LNG Partners LP and Marubeni Corporation on their $1.4bn acquisition of AP Moller Maersk’s LNG shipping fleet

14 October 2011

Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised a joint venture formed by its long term client Teekay LNG Partners LP, and Marubeni Corporation, on its successful bid to acquire of A.P. Moller Maersk’s LNG shipping fleet, at a value of $1.4bn. Teekay will have 52% of the joint venture.

The transaction includes the acquisition of a 100% ownership interest in six LNG carriers and a 26% ownership in two additional LNG carriers, in addition to related time charter contracts. The acquisition will be financed by a combination of bridge loan facilities and existing liquidity.

The deal was signed in Copenhagen on 12 October 2011, and is expected to close during the fourth quarter of 2011, subject to charterers’ consent and regulatory authority approval.

The WFW team was led by Head of Shipping, Nigel Thomas, assisted by partners Mark Tooke and Andrew Baird, and on the Competition side partner Emanuela Lecchi, with assistants Patrick Smith, Kavita Shah, Jason Logendra, Neil O’Donnell, David Galea and Rhodri Thomas.

A team from the Danish law firm Plesner led on all Danish law issues, headed by partner Henrik Lønberg.

Nigel Thomas, partner and Head of Shipping at WFW, said: “This is a significant deal for our longstanding client Teekay, as well as a complex and satisfying achievement for us. It is Teekay LNG’s largest acquisition of on-the-water vessels to date, and it has been another excellent opportunity to demonstrate WFW’s pre-eminent capability in all aspects of major shipping deals, and our ability to marshal a cross-border team of multiple disciplines.”