Singapore-based petroleum and gas shipping company BW LPG plans to merge with U.S. peer Dorian LPG, under which Dorian shareholders would receive 2.12 BW LPG shares for each Dorian share. The total equity value of the transaction is approximately $479 million and the total enterprise value is approximately $1.1 billion, including the assumption of net debt.
The revised proposal represents a value of $8.67 per share of Dorian common stock based on BW LPG’s closing share price of 32.86 Norwegian Krones on July 6, 2018.
The transaction would create a leading owner and operator of modern very large gas carries, and shareholders realize the significant benefits it would bring to stakeholders of both companies, including a combined fleet with better geographical coverage that will enable customers to receive improved utilization, scheduling, and positioning.
Dorian and its shareholders would also benefit from significant synergies, increased market capitalization, and a stronger credit profile. In addition, the deal would translate into additional earnings and cash flow accretion for the company’s shareholders.