BW LPG takes delivery of vessel BW Avior, completes Avance Gas deal

BW LPG (BWLP) has taken delivery of vessel BW Avior. All 12 VLGCs are now delivered through a handover process, and the transaction has been successfully completed. BW LPG has issued 2,141,000 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 159,282,000, representing a total share capital in the amount of $619,867,048. The new shares have been legally and validly issued and are fully paid. Following the above issuance, Avance Gas holds 19.282M shares in BW LPG, representing approximately 12.11% shareholding. Each tranche of the consideration shares has a 40 calendar-day lockup period following the delivery of each vessel and its issuance to Avance Gas. The total consideration of the transaction was $1.05B and settled through a cash consideration of $585.4 million, novation of $132M pertaining to two sale-leaseback vessels, and the issuance of 19.282M new BW LPG shares which was priced at $17.25 per share, representing a value of $332.6M. The liquidity upon completion of the transaction was estimated to be $552M as reported in Q3 earnings release. Overall, 14 vessels remain unencumbered and can be financed in 2025. With the completion of the transaction, BW LPG owns and operates a total of 53 VLGCs, of which 22 are LPG dual-fuel, solidifying BW LPG’s position as the world’s largest owner and operator of VLGC, and that for the dual-fuel powered VLGCs. With the expanded fleet, BW LPG will maintain its balanced chartering strategy, targeting a coverage of approximately 35-40% of its fleet capacity using time charters and Freight Forward Agreements.