Shares of GasLog (GLOG) - Get Report rose after the New York investment manager BlackRock (BLK) - Get Report agreed to buy a stake in the provider of shipping and services for liquefied natural gas for $5.80 a share cash.
Shares of the Piraeus, Greece, company at last check rose 18% to $5.85.
The deal price is a premium of 17% to GasLog's closing share price on Feb. 19 and a premium of 22% to its 30-day volume-weighted-average price.
A statement said that BlackRock's division agreed to buy all shares that aren't held by certain current holders. The current holders include Blenheim Holdings, which is owned by the Livanos family, and an affiliate of the Onassis Foundation.
After the deal closes, those current holders will continue to control 55% of GasLog and the BlackRock division will have 45%.
For GasLog holders the deal provides "an immediate and considerable premium for their shares and [allows] for access to growth capital currently absent in the public equity markets,” Peter G. Livanos, chairman of GasLog, said in a statement.
Liquefied natural gas is gas that's been super-cooled to efficiently enable transportation, shipping and storage.
"BlackRock’s [global energy and power infrastructure] team has a track record of success in supporting energy infrastructure businesses such as ours," he added.
Mark Florian, head of the BlackRock energy and power infrastructure team, said in a statement that GasLog has "strong capabilities in meeting the growing global demand for LNG, particularly in Asia, through its fleet of modern, efficient vessels.
"As the global shift to more environmentally friendly energy sources such as natural gas and renewables from coal and other fuels continues, we are pleased to invest in an infrastructure business supported by long-term contracts with leading energy companies and that supports the global energy transition."
A panel of GasLog directors who are independent of the current shareholder group determined that the terms were in the best interests of the public shareholders.
The transaction is expected to close in the second quarter, subject to conditions including a vote of a majority of the shares not controlled by the current holders.
GasLog also reported that it swung to fourth-quarter net income of 27 cents a share from a year-earlier loss of 65 cents. The latest adjusted earnings were 24 cents a share. Revenue reached $192.6 million, up 5.7% from $182.3 million in the year-earlier quarter.
A survey of analysts by FactSet produced consensus estimates of GAAP net income of 24 cents a share, or an adjusted 23 cents, on revenue of $184.2 million.