December 19, 2014
Kawasaki Kisen Kaisha, Ltd.
“K” Line to sell all shares it holds in FLEX LNG
Kawasaki Kisen Kaisha, Ltd. (“K” Line) has decided to sell all shares it currently holds in FLEX LNG Ltd. (“FLEX LNG”).Since June 2008, “K” Line, as shareholder of FLEX LNG, has promoted the floating LNG business mainly targeting small and medium sized gas fields.“K” Line had been the largest shareholder and a strategic partner in this business, but regretfully the targeted projects have gradually stagnated due to the economic downturn precipitated by the global financial crisis in 2008. In addition, the US shale gas development brought in a drastic change in the market trends. FLEX LNG reviewed its strategy and agreed with Samsung Heavy Industries to change their existing LNG FPSO building contracts into LNG Vessel building contracts. While “K” Line reviewed its strategy in FLEX LNG business to cope with such an uncontemplated situation, it received a mandatory offer whereby “K” Line has an option to sell its shares in FLEX LNG based on the Norwegian Securities Trading Act, and consequently decided to accept the offer.Although “K” Line will leave from FLEX LNG,“K” Line will still continue to strengthen its offshore energy development business represented by Offshore Support Vessels and Drillships, etc.
*1. FLEX LNG was incorporated in 2006 and is listed on Oslo Access.
*2. Announcement by Oslo Stock Exchange