LPG carrier operator Epic Gas has entered into an agreement with Lauritzen Kosan, the gas carrier unit of J. Lauritzen, to combine their fleet and business activities by creating BW Epic Kosan.
The combination will creates the world’s largest gas carrier fleet LPG with Lauritzen Kosan contributing 34 gas carriers to Epic Gas’s fleet of 43 pressurised gas vessels, in addition to certain other assets, in exchange for new shares in Epic Gas equivalent to a 27% stake.
BW Epic Kosan will be headquartered in Singapore with Epic Gas’s current CEO Charles Maltby will be CEO of the combined entity, Lauritzen Kosan’s CEO Thomas Wøidemann will lead the commercial organisation·
As a part of this deal, BW Epic Kosan has secured committed finance for the Lauritzen Kosan fleet at $155m from SEB, Danske Bank, Nordea, Danish Ship Finance and Crédit Agricole CIB.
The transaction is expected to close by the end of the first quarter of 2021.
“This transaction combines two well reputed operators into a strong new entity in the sector. We welcome our colleagues from Lauritzen Kosan and look forward to working together to build a great company delivering cleaner energy and feedstock to communities around the world,” said Andreas Sohmen-Pao, chairman of Epic Gas.
“We are delighted to be partnering with BW Group and other Epic shareholders. This will help to improve operational efficiencies and deliver an enhanced service offering to our customers. With a large and modern fleet spanning LPG and other petrochemical gases, BW Epic Kosan will be well positioned to deliver value for customers, while meeting IMO objectives for decarbonisation,” said Tommy Thomsen, chairman of Lauritzen Kosan.