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August 22, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Norwegian company offers to buy Stamford shipper Dorian LPG in $1.1 billion deal

Photo courtesy of Dorian LPG’s website

One of the world’s largest liquefied petroleum gas (LPG) shippers, Norway’s BW LPG, has offered to buy Stamford-based competitor Dorian LPG in a $1.1 billion all-stock deal.

Under the offer’s terms, Dorian shareholders would receive 2.05 BW LPG shares for each Dorian share, equal to $7.86 per share, a premium of 13 percent from Friday’s closing price and based on BW LPG’s share price on May 28.

Dorian LPG’s equity is valued at about $441 million; including debt, the transaction is valued at $1.1 billion.

The deal is backed by shipping conglomerate BW Group, which owns 14.2 percent of Dorian and about 45 percent of BW LPG.

Dorian LPG’s fleet consists of 22 very large gas carriers (VLGCs); the combined company would own 73 vessels, consisting of 68 VLGCs, two VLGCs currently under order, and three large gas carriers.

Dorian’s board of directors confirmed that it had received the unsolicited proposal from BW LPG, which it said was under review in consultation with its financial and legal advisers.