Alternative investment firm Stonepeak has agreed to acquire Teekay LNG Partners, a Bermuda-based owner and operator of liquefied natural gas (LNG) carriers, in an all-cash deal worth $6.2bn.

The consideration includes consolidated and proportionate joint venture net debt apart from $1.5bn in common unit equity value.

Through its carriers, Teekay LNG offers LNG and liquefied petroleum gas (LPG) services mainly under long-term, fee-based charter contracts.

The company has interests in 47 LNG carriers, 21 mid-size LPG carriers, as well as seven multi-gas carriers. Its ownership stakes in the vessels range from 20% to 100%.

Besides, the company has a 30% stake in an LNG regasification terminal.

Stonepeak senior managing director James Wyper said: “Stonepeak has long recognised the growing global demand for LNG and importance of natural gas as a bridge fuel, particularly as the world continues to shift toward cleaner sources of energy.

“Through this transaction, we have an exciting opportunity to invest in a critical energy transition infrastructure business in the form of Teekay LNG’s high-quality, modern fleet of vessels and stable long-term customer contracts.”

Teekay LNG is a publicly traded master limited partnership created by Bermuda-based shipping group Teekay as part of its strategy to grow its operations in the LNG and LPG shipping sectors.

Following the closing of the deal, Teekay LNG’s common units will be delisted from the New York Stock Exchange (NYSE).

As per the terms of the deal, Stonepeak will offer a price of $17 per share to acquire 100% of the publicly listed LNG and LPG shipping company.

In this connection, investment vehicles managed by Stonepeak will buy nearly 36 million shares owned by Teekay and the latter’s ownership in Teekay LNG’s general partner, Teekay GP. This includes an economic ownership interest equivalent to nearly 1.6 million Teekay LNG shares.

Currently, Teekay has a stake of about 41% in the LNG carrier owner. Teekay has signed a voting and support agreement to vote in favour of the deal with Stonepeak.

Teekay will transfer to Teekay LNG the ownership of the management services firms that presently deliver the operations for the latter as well as some of its joint ventures under existing management services contracts.

Teekay president and CEO Kenneth Hvid said: “Since the initial public offering in 2005, Teekay has built Teekay LNG into the world’s third largest independent LNG carrier owner and operator, with one of the biggest and most diversified portfolios of long-term contracts with leading players in the LNG industry.

“We believe this Transaction represents a unique opportunity to monetise our position in Teekay LNG while realizing an attractive return on investment for Teekay and for Teekay LNG common unitholders.”

The closing of the deal is subject to approval of Teekay LNG’s common unitholders and certain customary conditions and is expected to occur by the year-end.