KNOT Offshore Partners Faces Buyout Proposal
KNOT Offshore Partners (KNOP), a New York-listed shuttle tanker owner, has received an unsolicited buyout proposal from its parent company, Knutsen NYK Offshore Tankers AS (KNOT). The proposal aims to acquire all publicly held common units and transition the partnership into a private entity. The offer includes a cash consideration of $10 per common unit, facilitated through a merger with a KNOT subsidiary.
Proposal Under Review by Conflicts Committee
The buyout proposal is currently under scrutiny by KNOP’s conflicts committee, which is composed entirely of independent directors. This committee will engage financial and legal advisors to thoroughly evaluate the offer. The potential deal is contingent upon several approvals, including consent from the conflicts committee, the boards of directors of both companies, and a majority of KNOP’s unitholders across common, Class B, and preferred units. Additionally, the proposal must meet standard regulatory and closing conditions, and there is no guarantee that a definitive agreement will be reached.
KNOT Offshore Partners, based in Norway, operates a fleet of approximately 20 shuttle tankers. These vessels primarily support offshore oil production in Brazil and the North Sea under long-term charters. The company was established in 2013 as a spin-off from KNOT, a joint venture founded in 2010 by Trygve Seglem’s TS Shipping Invest (TSSI) and Japan’s Nippon Yusen Kaisha (NYK). As the situation develops, stakeholders will be closely monitoring the outcome of the proposal and its implications for the future of KNOP.
