Dorian LPG moves to protect itself from hostile takeovers

Dorian LPG moves to protect itself from hostile takeovers

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.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

Related Posts