Shares of Golar LNG (NASDAQ: GLNG) surged more than 15% by 10 a.m. EST on Wednesday. Fueling the LNG stock was a deal to sell its joint-venture interest in Hygo Energy and stake in Golar LNG Partners (NASDAQ: GMLP) to New Fortress Energy (NASDAQ: NFE).
Golar LNG and its partner Stonepeak Infrastructure Partners have agreed to sell their Hygo Energy Transition joint venture to New Fortress Energy. The two partners each own 50% stakes in Hygo, a gas-to-power and downstream LNG distribution company in Brazil. New Fortress Energy will pay $580 million in cash and 31.4 million shares for Hygo, implying a $3.1 billion enterprise value, with Golar getting 18.6 million shares and $50 million of cash. Golar had previously planned to complete an initial public offering for Hygo but had to pull back following some issues with that entity’s former CEO.