EPS to Consolidate LNG Transport by Buying Remaining Shares of CoolCo
CoolCo, a pure play LNG Carrier, which has been publicly traded for just over three years, is in advanced discussions with its majority owner, Eastern Pacific Shipping, for a potential buyout of its outstanding shares. The move comes in response to the outlook for LNG shipping after CoolCo grew rapidly after being spun off from Golar LNG in 2022.
EPS worked with Golar in the formation of the dedicated LNG shipping company to simplify the corporate structure and create a pure play well-positioned to participate in the rapidly growing LNG market. Three years later, analysts expect an emerging oversupply of LNG as the United States and others have moved rapidly to increase production and exports. There has also been a rush to build vessels for the sector, and now the U.S. is looming over the business with a proposed requirement that a portion of LNG exports must be carried on U.S.-flagged vessels.
“Despite challenging market conditions, our commitment to CoolCo’s long-term development and, above all, to serving our charterers with the highest level of reliability and dedication remains unchanged. We believe our offer provides the best long-term alternative for CoolCo shareholders, and we hope to bring this proposed transaction to a close in the very near future,” said Cyril Ducau, CEO of Eastern Pacific Shipping.
The terms being discussed call for a cash offer of $9.65 per share for the 41 percent of the stock that EPS does not currently own. It represents a 26 percent premium to the closing price on September 22, 2025, and a 38 percent premium to the 90-day trading average. The Board of Directors of CoolCo has established an independent Special Committee, comprised solely of independent and disinterested directors, to review and negotiate the terms of the potential transaction.
CoolCo traces its origins to the founding of Gotaas-Larsen in 1946 and the company’s first LNG carrier ordered in 1970. Gotaas-Larsen became Golar in 2001 and later entered the FLNG sector as a developer of floating terminals, and today is the only independent provider of FLNG as a service. They separated the business in 2022 as part of a long-term plan that the companies had been pursuing for several years.
The LNG standalone company named CoolCo emerged, owning eight vessels, and acquired the ship management business from Golar. Today, the fleet consists of 13 LNG carriers owned by CoolCo as well as three additional managed vessels. It took delivery on two newbuilds in Q4 2024 and Q1 2025, while highlighting that its strategy includes ongoing assessment of growth opportunities through vessel acquisitions and potential consolidation in the fragmented LNG market. It draws on its relationship with EPS to strengthen its position with shipyards, financial institutions, and deal flow access.