NYSE-listed Scorpio Tankers has agreed to sell six million shares of Dorian LPG to a subsidiary of the BW Group.
BW will pay USD15.34/share, a 6.24% discount to Dorian’s closing price of USD16.39 on 17 July. Scorpio Tankers will garner USD92.04 million in gross proceeds from the sale and will still retain 3,392,083 shares of Dorian.
Following the transaction, the largest shareholder in Dorian will be Seacor with 16.1%, followed by Kensico Capital (13.8%), BW Group (10.4%), Dorian Holdings (8%), Scorpio Tankers (5.8%), and BH Logistics (2.4%).
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Scorpio Tankers acquired its Dorian LPG shares in 4Q13 in return for 11 Very Large Gas Carrier (VLGC) newbuilding contracts. When that shares-for-newbuilding contracts deal was finalised, Scorpio had paid USD83.1 million in yard instalments.
Scorpio Tankers has already turned a profit on its VLGC contracts and still retains stock worth USD55.6 million based on Dorian’s 17 July closing price.
The purchase of Dorian shares by the BW Group complements the group’s LPG presence via BW LPG. BW LPG owns and operates 38 LPG carriers possessing almost three million cubic metres of capacity, with newbuilds on order that will add a further 672,000 m³ of capacity.