BW LPG sweetens its Dorian LPG merger offer

JULY 9, 2018 — BW LPG Limited (OSE:BWLPG) says it has increased its all-stock proposal to combine with Dorian LPG Ltd. (NYSE: LPG). Under the sweetened deal, Dorian shareholders would now receive 2.12 BW LPG shares for each Dorian share rather than 2.05 shares. BW LPG also announced its intention to nominate “independent, highly qualified individuals” to stand for election to Dorian’s Board of Directors at Dorian’s 2018 Annual Meeting of Shareholders.

BW LPG says this latest offer represents a value of $8.67 per share of Dorian common stock based on BW LPG’s closing share price of NOK 32.86 on July 6, 2018 and that the total equity value of the transaction is approximately $479 million and the total enterprise value is approximately $1.1 billion, including the assumption of net debt. According to BW LPG,t he revised proposal represents a premium of 25% to the closing Dorian share price on May 25, 2018, the last trading day prior to the announcement of BW LPG’s initial proposal, of $6.96 per share and a premium of 19% to the long-term historical exchange ratio of Dorian and BW LPG since Dorian’s IPO.

In a letter sent today to the Dorian Board of Directors, Andreas Sohmen-Pao, Chairman of the BW LPG Board, and Martin Ackerman, its CEO, close by saying:

“In our dialogue with Dorian shareholders, we have heard overwhelming support for this transaction. Therefore, we intend to nominate a slate of independent and highly qualified director candidates to stand for election to Dorian’s Board. We encourage Dorian shareholders to support the election of these directors with their votes.”

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