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Keppel and partners pare and sell stake in FLNG for US$658m to Golar LNG Partners

KEPPEL Corporation on Thursday said it has signed a sale and purchase agreement together with Golar LNG and Black & Veatch (B&V) to sell an equity interest in Golar Hilli LLC to a subsidiary of Golar LNG Partners for US$658 million, less net lease obligations.

The sale is in conjunction with Golar LNG's master limited partnership structure for the partnership to acquire an equity interest in the floating liquefied natural gas (FLNG) Hilli Episeyo.

Upon closing, which is expected to occur by end-April 2018, KSI, Golar and B&V will sell an aggregate 50 per cent of the common units in Golar Hilli LLC (comprising 44.55 per cent Golar, 5 per cent KSI and 0.45 per cent B&V respectively) to a subsidiary of the partnership.

Prior to the sale, Keppel had a 10 per cent stake in Golar Hilli LLC. After the sale of interests, Keppel's effective stake in Golar Hilli LLC will be 5 per cent of the common units.

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Keppel will retain its stake of 10 per cent in Series A special units which relates to the cash flows associated with oil price linked elements of the tolling fee negotiated in the liquefaction tolling agreement, and 10 per cent of Series B special units which relates to the cash flows associated with any future expansion of contracted capacity beyond the present 50 per cent of the Hilli.

The sale is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corp for the current financial year.