IDAN OFER’S Eastern Pacific Shipping has launched a bid to take liquefied natural gas operator CoolCo private by acquiring the remaining shares in the company.

Singapore-based EPS today revealed that it is in “advanced discussions” over the potential deal that would see all outstanding shares not held by the company in CoolCo for a cash price of $9.65 per share.

CoolCo was set up by Golar LNG in late 2021 with equity backing of shipowner Ofer, who has just under a 60% share in the company, as a spin-off to house its fleet of eight modern LNG carriers. Today, the pure-play LNG carrier has expanded to a fleet of 13 vessels operating on both short- and long-term charters with major leading oil and gas traders.

The completion of the merger, which would come through a cash merger under Bermudan law, would see CoolCo delisted from both the New York Stock Exchange and Euronext Growth Oslo.

The share offering represents a 26% premium on the September 22 closing price, and 38% premium on a 90-day weighted average.

“Despite challenging market conditions our commitment to CoolCo’s long-term development and, above all, to serving our charterers with the highest level of reliability and dedication remains unchanged,” said EPS chief executive Cyril Ducau.

“We believe our offer provides the best long-term alternative for CoolCo shareholders, and we hope to bring this proposed transaction to a close in the very near future.”

Commenting on the potential deal, Fearnley Securities said that with the LNG market expected to suffer from a supply glut in the coming years, this will likely result in “a spot market below CoolCo’s commercial bid evaluation for the coming two years”.

However, it said that the offer is at solid premium and “screens fair” to where the equity has been trading year to date.

“Hence, we would advise investors to take the cash offer from EPS,” said Fearnley Securities.

EPS is targeting to complete the transaction in either the final quarter of this year or the first in 2026.

EPS said there could be no assurances that CoolCo and EPS would successfully negotiate definitive agreements, or that the proposed transaction would be completed.