KNOT Seeks to Take KNOT Offshore Partners Private
New York-listed shuttle tanker operator KNOT Offshore Partners (KNOP) has received a buyout proposal from its parent company, Knutsen NYK Offshore Tankers AS (KNOT). The proposal aims to acquire all publicly held common units and transition the listed partnership into a private entity.
“The unsolicited, non-binding offer proposes a cash consideration of $10 per common unit.”
The transaction would be executed through a merger between KNOP and a subsidiary of KNOT. KNOP’s conflicts committee, composed entirely of independent directors, plans to work with financial and legal advisors to assess the proposal.
The potential merger is contingent on several approvals, including those from the KNOP conflicts committee, the boards of both companies, and a majority of KNOP’s unitholders across common, Class B, and preferred units. The offer also requires fulfillment of standard regulatory and closing conditions. There is no guarantee that a final agreement will be achieved.
Headquartered in Norway, KNOT Offshore Partners operates about 20 shuttle tankers, primarily serving offshore oil production in Brazil and the North Sea under long-term charter contracts.
Author’s Summary
KNOT Offshore Partners faces a potential buyout by its parent firm KNOT, offering $10 per unit to take the company private pending multiple approvals.