Dorian LPG has moved to protect itself from any potential hostile takeover, adopting a shareholder rights plan and declaring a dividend distribution of one preferred share purchase right on each outstanding share of company common stock.
John Hadjipateras, chairman and ceo of the New York-listed gas company, commented on the so called poison pill plan. “The rights are designed to assure that all of Dorian LPG’s stockholders receive fair and equal treatment in the event of any proposed takeover of the company and to guard against abusive tactics to gain control of the company,” he said.
The rights will be exercisable only if a person or group acquires 15% or more of Dorian LPG’s common stock. Each right will entitle stockholders to buy one one-hundredth of a share of a new series of junior participating preferred stock at an exercise price of $60.
Last year Avance Gas mad a bid to takeover Dorian LPG. Avance has just failed in its bid to take over Aurora LPG and speculation is mounting that Avance – whose shareholders include John Fredriksen – will look again at Dorian in a bid to boost the number of ships in its fledgling fleet.
