BW LPG has moved ahead and made a voluntary unconditional tender offer for Aurora LPG, willing to pay more than it had originally planned.
BW LPG said today it will 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.
The consideration in the offer represents a premium of approximately 45% to the closing price on Oslo Axess on September 16, the last trading day prior to BW LPG’s first takeover.
“[W]e are confident that the combination of BW LPG and Aurora LPG will create a stronger player in the challenging environment in the LPG shipping industry,” said Martin Ackermann, CEO of BW LPG.
The combined entity will own the world’s largest VLGC fleet. Previously, BW rival Avance had made overtures to buy Aurora at which point BW started buying up shares in the latter. As of today, BW LPG has a 32.79% stake in Aurora.
On taking it over, BW LPG intends to delist Aurora.
“[T]his enhanced unconditional offer represents the best solution for our shareholders,” said Leiv Askvig, chairman of Aurora LPG.
