New Fortress Energy to buy Hygo Energy (Golar) for $2.18 billion

(Reuters) – New Fortress Energy Inc said on Wednesday it would buy Hygo Energy Transition Ltd, a 50-50 joint venture between Golar LNG Ltd and Stonepeak Infrastructure Fund II Cayman, for $2.18 billion to expand its presence in South America.

The deal is less than four months after the then chief executive of Hygo, which transports liquefied natural gas and operates related infrastructure, was named in a corruption investigation in Brazil. The investigation is in its early phase and the former CEO has not been charged.

The energy infrastructure company will acquire all of the outstanding shares of Hygo for 31.4 million shares of NFE Class A common stock and $580 million in cash.

New Fortress also agreed to buy Golar LNG Partners LP for about $251 million, or $3.55 per common unit, in cash. The company has also agreed to acquire Golar LNG Partners’ general partner, with the total deal at a $1.9 billion enterprise value.

Golar LNG Ltd shares were up 22.5% in premarket trade, while Golar LNG Partners LP’s shares gained about 20%. New Fortress Energy shares had risen 3.6%.

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