Acquisition of Gaslog, Ltd. by GIC

Given the rising demand of Liquefied Natural Gas (“LNG”) and the associated shipping need as a result, GIC, a Singapore sovereign multi-sector investment fund, were evaluating possibilities for investment in this area. With an investment strategy focused on infrastructure assets, focused shifted to GasLog, a leading LNG shipowner. To support in their growth-focused goals, GIC looked to FTI Consulting to conduct a comprehensive commercial due diligence and provide them with key insights on which to act on.

Our Impact

With a comprehensive commercial due diligence report, GIC were able to effectively identify the strengths and weaknesses of GasLog against its key competitors.
Confidence in the asset's future performance was reinforced by the validated long-term profitability through LNG charter rate forecasts up to 2050.
With this level of insight and validation, our client achieved a successful agreement to buy a 45% share of Gaslog from BlackRock, securing optimal value in the transaction.

Our Role

With thorough buy-side commercial due diligence assessment, the in-depth examination enabled the forecasting of potential revenues, opportunities, challenges and long-term trajectory of the target up to 2040 – providing GIC with the vital information needed to move forward with in their investment decisions.
To validate the valuation, our proprietary LNG shipping model was used to forecast various charter rates under different contractual scenarios, LNG market conditions and different sensitivities. This in-depth insight further enabled GIC to evaluate their investment decisions from a strong standpoint.
Additionally, quantitative market modelling was provided to assess the potential for GasLog in adjacent markets, such as CO2 shipping and Floating Storage and Regasification Units (“FSRU”) – two key target areas for future growth and expansion.