Zachry to acquire partial ownership in energy facility
Zachry American Infrastructure LLC and Hastings Funds Management (USA) Inc. have agreed to buy Cheniere Energy Inc.’s interest in Freeport LNG Development LP.
Zachry American is part of the Zachry group of companies in San Antonio. Hastings is a wholly owned subsidiary of Westpac Banking Corp. and is acting on behalf of various institutional investors. Freeport LNG Development is a liquefied natural gas terminal facility in Freeport, Texas.
Under the terms of the purchase, Zachry and Hasting will own a 30 percent limited partner interest in Freeport. The transaction should close in the second quarter of 2010 once the two parties complete their due diligence and secure necessary regulatory approvals.
The transaction should generate net proceeds of $104 million for Houston-based Cheniere (NYSE Amex: LNG). Cheniere is selling off its 30 percent stake to pay down a portion of a $400 million term loan held by one of its subsidiaries.
Zachry is an engineering, procurement and civil construction company. Cheniere is an energy company that is primarily engaged in LNG-related businesses. The Houston company owns and operates the Sabine Pass LNG receiving terminal and Creole Trail pipeline in Louisiana.
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