KNOT Offshore Partners LP received an unsolicited, non‑binding proposal from its sponsor, Knutsen NYK Offshore Tankers AS, to acquire all publicly held common units at a price of $10 per unit. The proposal was dated October 31 2025 and announced on November 3 2025.
The proposal is structured as a merger between the partnership and a wholly‑owned subsidiary of the sponsor. The Conflicts Committee of the partnership’s board, composed of independent directors, will evaluate the offer and retain advisors.
The transaction is subject to approvals from the Conflicts Committee, the partnership board, the sponsor board, and a majority of the partnership’s outstanding units. No assurance exists that definitive documentation will be executed or that the transaction will close.
KNOT Offshore Partners LP reported Q2 2025 results of $87.1 million in revenue, $22.2 million in operating income, and $6.8 million in net income, compared with $1.3 million operating income and a $12.9 million net loss in Q2 2024. The improvement is largely due to higher fleet utilization and charter revenues, offset by the absence of a large impairment charge recorded in 2024.
The sponsor’s offer follows a prior buyout in 2021 that resulted in the partnership’s delisting in 2022. In July 2025, the partnership announced the acquisition of the DP2 shuttle tanker Daqing Knutsen and a sale‑and‑leaseback of the Tove Knutsen, generating approximately $32 million in proceeds, and launched a $10 million common‑unit buyback program.
Management indicated that the sponsor’s proposal is intended to consolidate ownership, streamline operations, and potentially enhance strategic focus on the shuttle‑tanker market, which is expected to tighten in Brazil and the North Sea due to new offshore projects.
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