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June 27, 2018

BW LPG urges Dorian to reconsider merger offer

Global liquefied petroleum gas (LPG) vessel owner and operator BW LPG has called upon the board of directors of Dorian LPG to reconsider its proposal to combine both the companies.

Global liquefied petroleum gas (LPG) vessel owner and operator BW LPG has called upon the board of directors of Dorian LPG to reconsider its proposal to combine both the companies.

The call has been made after Dorian rejected the merger proposal, which includes the purchase of the company in an all-stock deal valued at $1.1bn.

According to Dorian, the ‘unsolicited, conditional’ offer made by BW LPG last month is not in the best interests of the company and its shareholders.

Urging Dorian to discuss the offer, BW LPG said that a merger will offer a unique opportunity to maximise value for the shareholders and other stakeholders of both the companies.

BW LPG also noted that the addition of Dorian’s fleet into its current portfolio of very large gas carriers (VLGCs) is expected to create a larger fleet and better geographical coverage.

“We have spoken with many BW LPG and Dorian shareholders and are pleased with the positive feedback we have received.”

BW LPG CEO Martin Ackermann said: “We urge Dorian’s Board of Directors to respond to its shareholders and engage with us.

“Since announcing the proposal, we have spoken with many BW LPG and Dorian shareholders and are pleased with the positive feedback we have received.

“It is clear that both companies’ shareholders recognize the compelling benefits of the proposed combination.

“We were surprised that Dorian’s Board of Directors rejected our proposal without giving us the opportunity to engage in a discussion, and believe a number of the points Dorian’s Board of Directors highlighted suggest a misunderstanding of our business and the proposed combination.”

Ackermann also said that BW LPG is willing to meet Dorian representatives to hold further negations on the merger offer.

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