Other deals this week include two M&A deals in real estate, tech sectors valued up to $410 million
British Columbia’s Ksi Lisims and UK-based energy giant Shell have signed a 20-year LNG sale and purchase agreement. Also in this week’s deals roundup are two M&A deals in the real estate and tech sectors, one of which is valued at $410 million.
Ksi Lisims, Shell sign 20-year LNG sale and purchase agreement
Ksi Lisims LNG Limited Partnership, a co-development of the Nisga’a Nation, Rockies LNG Limited Partnership, and Western LNG LLC, have signed a 20-year LNG sale and purchase agreement (SPA) with UK-based energy giant Shell Eastern Trading Pte Ltd. in which Shell will purchase 2 million tonnes of liquefied natural gas (LNG) per year from the Ksi Lisims LNG project on a free-on-board basis. This is the first LNG export contract signed by Ksi Lisims LNG.
Baker Botts L.L.P. acted as legal counsel to Ksi Lisims in connection to the drafting and negotiation of the SPA.
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Ksi Lisims LNG, meaning “from the Nass River” in the Nisga’a language, is a proposed net-zero LNG project in British Columbia, Canada It will be located on property held by the Nisga'a Nation near Pearse Island's northernmost point. By 2030, Ksi Lisims LNG, which is powered by renewable hydroelectricity, will have achieved net-zero status and be the world's lowest emission-intensity LNG facility. Two floating LNG production and storage units will provide 12 million tons of LNG annually to the plant.
“The Ksi Lisims LNG project is an innovative development for North America,” said Western CEO and President Davis Thames. “Our project, utilizing floating LNG production units built by Samsung Heavy Industries and an all-electric process technology developed by Black & Veatch, will be the lowest emitting LNG liquefaction facility in the world. The strong fundamentals of our project have earned the confidence of some of the most established companies in the LNG industry.”
Shell Energy Executive Vice President Steve Hill said, “LNG is a critical pillar of global energy security and global demand is set to increase in the years to come. We are pleased to sign this agreement with Ksi Lisims LNG which will help Shell to continue providing diverse and flexible LNG supply to its customers.”
“The Nisga’a Nation has been striving to grow economic opportunities for our people right here at home,” said Nisga’a Lisims Government President Eva Clayton. “Ksi Lisims LNG is the cornerstone of a brighter future for our people. As the project continues to pick up momentum, evidenced by this agreement with Shell, the Nisga’a people are now able to envision the opportunity and prosperity that Ksi Lisims LNG will bring to our Nation.”
“We’re proud to be working to deliver the world’s cleanest natural gas to markets that need it most,” said Rockies LNG President and CEO Charlotte Raggett. “Canada is an ideal global energy supplier, producing the world’s most responsible and lowest-emission natural gas at the shortest distance from Asia in the Americas. The Ksi Lisims LNG project will provide energy markets in Asia with low-carbon, reliable energy that helps transition from higher emitting fuels to meet growing energy needs and supports continued growth in intermittent renewables such as wind and solar.”
The Ksi Lisims LNG project is expected to be among the first LNG export facilities in Canada, and the second largest in terms of capacity.
Morguard to sell portfolio of 14 high-quality hotels in a deal valued at $410 million
Morguard Corporation has agreed to sell a portfolio of 14 high-quality hotels as part of the company’s move to focus on core real estate investments, including office, industrial, retail, and multi-suite residential properties. The buyer’s identity has not been disclosed.
The deal is valued at a gross proceeds of $410 million. After repaying first-mortgage debt totalling $48.7 million, Morguard will receive net proceeds of $361.3 million.
Included in the deal are Marriott, Hilton, IHG, and independent hotels located in major urban centers across Canada.
“It is an opportune moment to divest these properties given the current market demand for a hotel portfolio of this size and quality, as well as their enhanced market value,” said Morguard Chairman and CEO K. Rai Sahi. “Morguard has strategically divested our hotel portfolio to align with our objectives of strengthening the company's balance sheet while owning a high-quality portfolio of income-producing real estate.”
Upon deal completion, Morguard will retain ownership of two hotels including the dual-brand Hilton Garden Inn and Homewood Suites in Ottawa and the Inn at the Quay in New Westminster, B.C.
The deal is expected to close in the first quarter of 2024, subject to customary closing conditions.
Business software company Enghouse Systems to buy US-based Sonic Foundry’s Mediasite for $21 million
Business software company Enghouse Systems Limited has entered into a definitive agreement with US-based Sonic Foundry, Inc. by which Enghouse will acquire the Mediasite business of Sonic Foundry, including its Japanese and Dutch subsidiaries, for approximately $21 million (US$15.5 million).
Mediasite is a video service that helps organizations with recording, live streaming and video management.
commented, “Enghouse’s expertise in growing enterprise software businesses and their portfolio of complementary video communications solutions makes them a natural fit to acquire Mediasite,” said Sonic Foundry CEO Joe Mozden, Jr. “The sale also aligns with the strategic vision I first laid out for Sonic Foundry, creating more opportunities and flexibility for us to focus on our emerging new businesses, Vidable® and Global Learning Exchange™.”
The deal is expected to close in the first quarter of 2024, subject to approval by Sonic Foundry shareholders and certain customary closing conditions.