KNOT Offshore Partners LP (KNOP) announced that discussions regarding the unsolicited non-binding proposal received by the Partnership on October 31, 2025 from Knutsen NYK Offshore Tankers AS (“KNOT”), pursuant to which KNOT proposed to acquire through a wholly-owned subsidiary all publicly held common units of the Partnership in exchange for cash (the “KNOT Offer”), have been terminated.
The Conflicts Committee of the Partnership’s Board, which is comprised of only non-KNOT-affiliated directors, retained independent financial and legal advisors to assist it in evaluating the KNOT Offer.
The Conflicts Committee and its independent advisors reviewed the KNOT Offer and had several discussions with KNOT over the last few months regarding the potential transaction.
Following such discussions, the parties have determined that they will not be able to reach an agreement and have therefore terminated discussions regarding the KNOT Offer.
This non-official acquisition proposal is reportedly another attempt by parent company KNOT to fully integrate the shuttle tanker operator into its portfolio, following previous efforts to simplify the group’s structure. Market analysts believe that the success of the deal may depend on valuation and the cash flow from long-term contracts related to the KNOP fleet.
Currently, KNOP operates approximately 20 shuttle tankers, which primarily support offshore oil production in key regions such as Brazil and the North Sea through long-term charter contracts. KNOP was spun off from its parent company KNOT in 2013. KNOT is a joint venture established in 2010 by Trygve Seglem’s TS Shipping Invest (TSSI) and Nippon Yusen Kaisha (NYK).