BW LPG to combine with Dorian LPG for all-stock transaction valued US$ 1.1 billion

KUALA LUMPUR, May 30 (Bernama) -- BW LPG Ltd (BW LPG) announced a proposal to combine with Dorian LPG Ltd. (Dorian) in an all-stock transaction valued at US$ 1.1 billion (RM 4.3 billion).

"Combining Dorian's high quality fleet and operating platform with BW LPG's vessels and expertise would create a larger combined fleet with better geographical coverage to drive value for our customers," said BW LPG chief executive officer, Martin Ackermann.

"Our 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," he added.

Dorian shareholders would receive 2.05 BW LPG shares for each Dorian share and receive at closing New York Stock Exchange (NYSE) listed BW LPG shares, representing in the aggregate 45 per cent of the combined company at the completion of the transaction.

The transaction would bring strategic and financial benefits as both companies would be a leading owner and operator of modern VLGCs, enhances financial flexibility to make strategic investments across market cycles and increase value for customers, a statement said.

It will also generate significant free cash flow accretion to Dorian shareholders and substantial financial and operational synergies and combined BW LPG's share to be dual listed on NYSE and Oslo Stock Exchange (OSE).

BW LPG will host a conference call to discuss first quarter of 2018 earnings results and proposed transaction on May 30, 2018 at 14:00 hrs CET (Oslo, Norway), 08:00 hrs EDT (New York, USA) and 20:00 hrs SGT (Singapore).

BW LPG is the world's leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) and Large Gas Carriers (LGC) with a total carrying capacity of over four million cbm. More information at www.bwlpg.com.

--BERNAMA