BW LPG Limited - BW LPG Takes Delivery of Vessel BW Chinook From Avance Gas

Rhea-AI Summary

BW LPG has taken delivery of vessel BW Chinook from Avance Gas Holdings on November 1, 2024, as part of its previously announced acquisition of 12 modern Very Large Gas Carriers (VLGCs). As part of the transaction, BW LPG issued 1,350,000 new shares to Avance Gas, bringing the total issued shares to 141,350,000 with a total share capital of USD 310,540,048. Following this issuance, Avance Gas now holds approximately 0.96% shareholding in BW LPG.

Positive

• Expansion of fleet capacity through acquisition of modern VLGC vessel
• Part of larger strategic acquisition of 12 VLGCs, strengthening market position

Negative

• Share dilution of 0.96% due to issuance of new shares

Insights

Shipping Industry Analyst

The delivery of BW Chinook marks a significant milestone in BW LPG's strategic fleet expansion, strengthening its position as the world's leading VLGC operator. The transaction, involving the issuance of 1,350,000 new shares as partial payment, demonstrates a capital-efficient approach to fleet growth. This acquisition is part of a larger deal for 12 modern VLGCs from Avance Gas, which will substantially increase BW LPG's carrying capacity and market presence.

The deal structure, using shares as currency, preserves cash while creating alignment between the two companies through Avance Gas's new 0.96% ownership stake in BW LPG. The expanded fleet enhances BW LPG's operational flexibility and economies of scale in the growing LPG transportation market. This strategic move reinforces BW LPG's competitive advantage in meeting increasing global demand for LPG transportation services.

SINGAPORE--(BUSINESS WIRE)-- With reference to the stock exchange announcement on 15 August 2024 for the acquisition of 12 modern Very Large Gas Carriers (VLGCs) from Avance Gas Holdings Ltd (“Avance Gas”, OSE ticker code: “AGAS”), BW LPG Limited (“BW LPG” or the “Company”, OSE ticker code: “BWLPG.OL”, NYSE ticker code “BWLP”) has taken delivery of vessel BW Chinook on 1 November 2024.

BW LPG has today issued 1,350,000 new BW LPG shares to Avance Gas as part-consideration for the above vessel. Following the issuance of the new shares, the total number of issued shares of BW LPG is 141,350,000, representing a total share capital in the amount of USD 310,540,048. The new shares have been legally and validly issued and are fully paid.

Following the above issuance, Avance Gas holds 1,350,000 shares in BW LPG, representing approximately 0.96% shareholding.

About BW LPG

BW LPG is the world’s leading owner and operator of LPG vessels, owning and operating Very Large Gas Carriers (VLGC) with a total carrying capacity of over 3 million CBM. With five decades of operating experience in LPG shipping, an in-house LPG trading division and a growing presence in LPG terminal infrastructure and distribution, BW LPG offers an integrated, flexible, and reliable service to customers along the LPG value chain. More information about BW LPG can be found at https://www.bwlpg.com.

BW LPG is associated with BW Group, a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies. Founded in 1955 by Sir YK Pao, BW controls a fleet of over 450 vessels transporting oil, gas and dry commodities, with its 200 LNG and LPG ships constituting the largest gas fleet in the world. In the renewables space, the group has investments in solar, wind, batteries, biofuels and water treatment.

This information is subject to disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241101815449/en/

Kristian Sørensen, CEO, BW LPG

Samantha Xu, CFO, BW LPG

E-mail: investor.relations@bwlpg.com

Source: BW LPG Limited

FAQ

What vessel did BW LPG (BWLP) acquire from Avance Gas on November 1, 2024?

BW LPG acquired the vessel BW Chinook from Avance Gas Holdings on November 1, 2024.

How many new shares did BW LPG (BWLP) issue to Avance Gas for the BW Chinook?

BW LPG issued 1,350,000 new shares to Avance Gas as part-consideration for the BW Chinook vessel.

What is Avance Gas's shareholding in BW LPG (BWLP) after the new share issuance?

Following the share issuance, Avance Gas holds 1,350,000 shares in BW LPG, representing approximately 0.96% shareholding.