BW LPG Finalizes Acquisition of 12 VLGCs from Avance Gas
(P&GJ) — BW LPG Limited has completed its $1.05 billion acquisition of 12 Very Large Gas Carriers (VLGCs) from Avance Gas Holdings Ltd., following the delivery of the final vessel, BW Avior, on Dec. 31.
The transaction, first announced in August, involved a combination of cash payments, share issuances, and the novation of two sale-leaseback agreements. BW LPG issued 2,141,000 new shares to Avance Gas as part of the final payment, bringing its total issued shares to 159,282,000, with a total share capital of $619.87 million. Avance Gas now holds approximately 12.11% of BW LPG shares.
The acquisition expands BW LPG’s fleet to 53 VLGCs, including 22 LPG dual-fuel vessels, cementing its position as the world’s largest owner and operator of such ships. CEO Kristian Sørensen emphasized the strategic benefits of the deal, stating, “We have issued 15% more shares to expand our owned fleet by 40%, and through our enlarged fleet, we are enhancing our commercial scale and operational leverage.”
The company plans to maintain a balanced chartering strategy, covering 35-40% of its fleet through time charters and Freight Forward Agreements. Despite recent challenges such as reduced sailing distances due to normalized Panama Canal transit levels, BW LPG is optimistic about 2025. The company expects strong growth in LPG production and exports from North America, supported by upcoming terminal expansion projects.
BW LPG’s liquidity at the close of the transaction was $552 million, and 14 of its vessels remain unencumbered, providing additional financing flexibility in 2025.
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