GIP acquires 25% interest in Freeport LNG for $850 mn
NEW YORK -- Global Infrastructure Partners (GIP), reported that its second fund, Global Infrastructure Partners II, has agreed to acquire from a consortium of institutional investors managed by Hastings Funds Management (USA), Inc. and Zachry American Infrastructure (the Sellers) an equity interest in Freeport LNG Development LP (Freeport LNG), currently anticipated to be 25% at closing with no further ownership in Freeport LNG by the Sellers. The purchase price for the transaction is $850 million, subject to certain milestones and purchase price adjustments. Freeport LNG is developing a three-train LNG export facility at its existing LNG receiving and regasification facility on Quintana Island, near Freeport, Texas. The transaction is expected to close in the fourth quarter of 2014 (following financial closing for Trains 1 and 2 of the Freeport LNG facility).
Adebayo Ogunlesi, Chairman and Managing Partner of GIP said “GIP is excited about the opportunity to partner with Freeport LNG, a leading U.S. LNG developer and operator. As the energy revolution in the U.S. turns it into a major LNG exporter, Freeport LNG is one of a handful of projects at an advanced stage of development. GIP has worked closely with Freeport LNG' s CEO Michael Smith and his experienced management team and we look forward to further developing our strategic relationship with Freeport LNG”.
Michael Smith, Chairman and CEO of Freeport LNG said “We are extremely pleased to welcome GIP, one of the world’s largest and most experienced infrastructure investors, to the Freeport LNG partnership. Over the past two years, we have developed a strong relationship with GIP. We are excited about adding GIP’s proven capabilities, industry knowledge and financial strength to Freeport LNG”.