New Fortress Energy to acquire Hygo Energy Transition and Golar LNG Partners in $5 billion combined deal

New Fortress Energy Inc.
NFE,
+0.92%
said Wednesday it has agreed to acquire Hygo Energy Transition Ltd. and Global LNG Partners LP
GMLP,
+4.10%
in a combined deal valued at $5 billion. The deal will make New Fortress the leading gas-to-power company in Brazil, the company said in a statement. Hygo is a 50-50 joint venture between Golar LNG Ltd.
GLNG,
+11.48%
and Stonepeak Infrastructure Fund II Cayman Ltd., a fund managed by Stonepeak Infrastructure Partners. “The addition of Hygo will quickly expand our footprint in South America with three gas-to-power projects in Brazil’s large and fast-growing market,” New Fortress Energy Chief Executive Wes Edens said in a statement. “With GMLP, we gain LNG ships and world-class operators that are an ideal fit to support our existing terminals and robust pipeline.” Under the terms of the deal, New Fortress will acquire all of Hygo’s shares for 31.4 million of its own shares, pulse $580 million in cash. That deal has an enterprise value of $3.1 billion and an equity value of $2.18 billion. GLNG will receive 18.6 million New Fortress shares plus $50 million in cash, while Stonepeak will receive 12.7 million New Fortress shares plus $530 million cash. The deal is expected to close in the first half. In the case of Golar LNG Partners, New Fortress will pay $3.55 per common unit is cash, in a deal with an enterprise value of $1.9 billion and an equity value of $251 million. That deal is also expected to close in the first half. New Fortress shares were up 2.7% premarket, while Golar LNG was up 15% and Golar LNG Partners shares rose 16%.