Norway’s BW LPG, the world’s largest liquid petroleum gas shipping company, is offering to buy competitor Dorian LPG in a $1.1 billion all-share deal.
Dorian shareholders will receive 2.05 BW LPG shares for each Dorian share, equal to $7.86 per share, BW LPG said in a statement on Tuesday.
New York-listed Dorian LPG’s equity is valued at about $441 million and including debt the transaction is valued at $1.1 billion.
Pursuant to the proposed transaction, BW LPG intends to dual-list on the New York Stock Exchange (NYSE) such that Dorian shareholders would receive at closing NYSE listed BW LPG shares, representing in the aggregate 45% of the combined company at the completion of the transaction, the statement said.
The proposal is supported by the Singapore-based gas and LNG shipping giant BW Group, which owns 14.2% of Dorian and approximately 45% of BW LPG.
BW LPG Chief Executive Officer, Martin Ackermann, said, “Our proposal represents a unique and compelling opportunity to maximize value for both Dorian and BW LPG shareholders. Combining Dorian’s high quality fleet and operating platform with BW LPG’s vessels and expertise would create a larger combined fleet with better geographical coverage to drive value for our customers.”
“Our proposal also provides Dorian shareholders with the opportunity to benefit from ownership of a larger company with enhanced trading liquidity that is better positioned for long-term growth and success,” he added.