Why Shares of Höegh LNG Partners Soared Today
Shares of Höegh LNG Partners (NYSE: HMLP), a limited partnership focused on liquefied natural gas (LNG), surged 31% on Wednesday after it reached a merger deal with its parent company, Höegh LNG Holdings.
Höegh LNG Holdings created Höegh LNG Partners in 2014 to purchase and operate LNG carriers, floating storage and regasification units, and other infrastructure assets. Now, the LNG service provider apparently wants to bring the limited partnership back under its corporate shell.
Under the terms of the deal, Höegh LNG Holdings would buy all Höegh LNG Partners' outstanding units it does not already own (it currently has a 45.7% stake) for $9.25 per unit, or roughly $167.6 million in cash. That's a premium of 35% to the partnership's closing price on Tuesday and a nearly 118% increase from Höegh LNG Holdings' previous offer in December.
Source Fool.com
