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.
