UPDATE 1-Teekay to sell shuttle tanker unit stake to Teekay Offshore

Thu Mar 3, 2011 9:47am EST

* Cash-and-stock deal valued at $390 mln

* Teekay Offshore sees deal to add to cash flow (Adds details)

March 3 (Reuters) - Tanker company Teekay Corp agreed to sell its 49 percent stake in Teekay Offshore Operating LP to its unit Teekay Offshore Partners LP in a cash and stock deal valued at $390 million.

Teekay Offshore, the oil production, storage and transportation unit of Teekay Corp, will pay $175 million and 7.6 million new common units to the parent company, after which it will own all of Teekay Offshore Operating LP.

Post-transaction, Teekay Corp will own 36.9 percent of Teekay Offshore, up from 28.3 percent.

Separately, Teekay Offshore said it expects the deal to add to its cash flow and to simplify its ownership structure of Teekay Offshore Operating.

Founded in 2006 by Teekay Corp, Teekay Offshore Operating currently owns a fleet of shuttle tankers, Floating Storage and Offtake units and a few conventional oil tankers.

Shuttle tankers are ships used for oil transportation from an off-shore oil field.

Shares of Teekay Corp were up 11 cents at $34.60, while units of Teekay Offshore were down 4 cents at $29.06 in early trade on Thursday on the New York Stock Exchange. (Reporting by Arup Roychoudhury; Editing by Gopakumar Warrier)

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Comments (1)
wkfish wrote:
This article has nothing to do with tnk. Tnk is a sister business and is not affected by this. I can’t believe that Reuters would get so mixed up. lol

Mar 07, 2011 11:27am EST  --  Report as abuse
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