The board of Aurora LPG has finally recommended BW LPG’s revised takeover offer.
The board said today that the offer now represents “the best solution” for Aurora LPG shareholders. The combined entity will own the world’s largest VLGC fleet.
“Due to the overall size of Aurora LPG and its balance sheet, the Board sees a rationale for a financial consolidation,” management explained in a release. “BW LPG offers financial robustness and flexibility which will be critical to the Aurora LPG assets and the combined entity,” the release continued.
BW LPG said at the end of October it would pay NOK16 ($1.93) in cash or NOK7.40 plus 0.3175 new shares. It had already upped its takeover price on October 3 to NOK13.55, up from an original bid of NOK12.30.
Aurora LPG had previously fended off another bid from rival Avance Gas.