Teekay spin off LNG fleet and oil tankers

Teekay Shipping, the world’s second-largest tanker company, plans to spin off its LNG tankers as a separately listed company, selling shares worth $110 million in an initial public offering.

The Marshall Island-based unit, Teekay LNG Partners LP, plans to sell 5.5 million shares at an indicated price of $20 apiece. Citigroup and UBS Investment Bank, which are managing the sale, have an over-allotment option to issue another 825,000 shares.

Teekay LNG has three LNG tankers and five one million-barrel oil tankers which are all leased out on charters lasting as long as 20 years.