US-headquartered liquefied petroleum gas company Dorian LPG is subject to a $1.1bn buyout offer from Singapore’s BW LPG.
BW LPG announced the all-stock deal yesterday, which would see Dorian shareholders receive 2.05 BW LPG shares per each Dorian share, equivalent to $7.86 per share and a 13% premium on Friday’s closing price for the New York-listed stock.
“The proposed combination is a unique and compelling opportunity to maximize value for both Dorian and BW LPG shareholders. Together, we would have better geographical coverage to drive value for our customers. Our all-stock 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,” Martin Ackermann, CEO of BW LPG told Splash today.
John Hadjipateras-led Dorian runs a fleet of 22 very large gas carriers (VLGCs).
If the offer is accepted the new entity would have 68 VLGCs and 73 vessels in total.
The LPG shipping sector has seen much consolidation in the last couple of years and Dorian LPG has been eyed by competitors repeatedly. BW Group already has a 14.2% stake in Dorian LPG.