Global liquefied petroleum gas (LPG) vessel owner and operator BW LPG has offered a proposal to purchase Dorian LPG for $1.1bn.
The all-stock deal includes around $441m equity value and the net debt of Dorian.
As part of the deal, Dorian shareholders will receive 2.05 BW LPG shares for each Dorian share, which is equal to $7.86 per share.
BW Group, which controls 14.2% of Dorian and about 45% of BW LPG share, has also supported the proposal.
However, the proposal awaits approval from BW LPG shareholders.
BW LPG CEO Martin Ackermann said: “Our proposal represents a unique and compelling opportunity to maximise value for both Dorian and BW LPG shareholders.
“Combining Dorian’s high-quality fleet and operating platform with BW LPG’s vessels and expertise would create a larger combined fleet with better geographical coverage to drive value for our customers.
“Our proposal also provides Dorian shareholders with the opportunity to benefit from ownership of a larger company with enhanced trading liquidity that is better positioned for long-term growth and success.”
BW LPG currently operates a fleet of more than 180 vessels that include oil tankers, liquefied natural gas (LNG) and LPG carriers, floating storage and regasification (FSRU) units, chemical tankers, dry cargo carriers, as well as floating production storage and offloading (FPSO) units.
Dorian LPG currently owns and operates a fleet of 22 modern very large gas carriers (VLGCs) that comprise 19 fuel-efficient 84,000cbm ECO-design VLGCs and three 82,000cbm VLGCs.