EPS eyes full ownership of CoolCo in LNG consolidation play

September 24th, 2025

Bermuda-based liquefied natural gas (LNG) carrier owner and operator Cool Company (CoolCo) is progressing discussions for the acquisition of its entire business by EPS Ventures, a subsidiary of Singapore-based shipowner Eastern Pacific Shipping (EPS).

LNG carrier Kool Husky (for illustration purposes only); Source: CoolCo

The discussions are said to be in advanced stages for a transaction that would entail EPS’s acquisition of all of the outstanding shares of CoolCo that it does not already own for $9.65 in cash per common share. This represents a 26% premium to the closing price on September 22, 2025.

As disclosed, the transaction would be implemented through a cash merger of a wholly owned subsidiary of EPS with and into CoolCo under the laws of Bermuda. Once the merger is completed, the company would be wholly owned by EPS and seek delisting from the New York Stock Exchange and Euronext Growth Oslo.

An independent special committee has been established to review and negotiate the terms of the potential transaction. According to CoolCo, the committee intends to recommend to the board the approval of the proposed terms of the transaction, subject to the completion of definitive agreements.

“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 Ventures.

The potential transaction closing dates are Q4 2025 or Q1 2026, subject to requisite approvals of the transaction and the satisfaction of certain other customary closing conditions.

One of the approvals needed is by holders of a majority of the common shares of CoolCo, which are owned by EPS (59.3%). The latter is quoted by CoolCo as saying it intends to vote its common shares in favor of the merger.

The Bermuda-based company recently completed the retrofitting of several LNG carriers from its fleet. The upgrade was designed to manage the boil-off gas (BOG), thus improving operational efficiency and environmental performance.