Dorian LPG Ltd. announces agreement with Scorpio Tankers Inc. to acquire its VLGC fleet
Dorian LPG Ltd. has entered into an agreement with Scorpio Tankers Inc. whereby Scorpio Tankers will contribute its entire Very Large Gas Carrier (VLGC) newbuilding contracts, together with a cash contribution of $1.9 million, in exchange for newly issued shares representing 30% of the Company’s pro-forma outstanding shares immediately following the transaction. As of the date of the transaction, Scorpio Tankers will have paid $83.1 million in installment payments for the 11 VLGC contracts, the Company said Monday in a press release.
As part of the transaction, the Company will grant Scorpio Tankers certain protection rights customary for significant shareholders, which will terminate upon Dorian LPG’s listing on the NYSE or NASDAQ, which is expected to take place within 2014.
The above-mentioned transaction, which is subject to the execution of definitive agreements and satisfaction of customary closing conditions, is expected to close within the fourth quarter of 2013, at which time the Company anticipates to commence a capital raise.
About Dorian LPG Ltd.
Dorian LPG is a pure-play LPG shipping company, combining the LPG shipping activities of Dorian (Hellas) S.A. (“Dorian”) and SEACOR, and is set to be a leading owner and operator of modern fuel-efficient VLGCs. Dorian LPG currently owns and operates three modern VLGCs and one pressurized LPG vessel. Dorian LPG previously ordered three fuel-efficient VLGC newbuildings from Hyundai Heavy Industries Co., Ltd. with deliveries in July and August 2014 and January 2015, and holds options for an additional three newbuildings with 2015 deliveries. After conclusion of the above-mentioned transaction, Dorian LPG will have a total of 14 firm fuel-efficient VLGC newbuildings on order at Hyundai Heavy Industries Co., Ltd. and Daewoo Shipping and Marine Engineering Ltd. Dorian LPG will also hold options for a total of five VLGCs. Dorian LPG has offices in Connecticut, USA; London, United Kingdom and Piraeus, Greece.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 19 tankers (one LR2 tanker, four LR1 tankers, one Handymax tanker, 12 MR tankers, and one post-Panamax tanker) with an average age of 3.9 years, time charters-in 29 product tankers (eight LR2, four LR1, eight MR and nine Handymax tankers), and has contracted for 54 newbuilding vessels (28 MR, 12 LR2, and 14 Handymax ice class-1A product tankers), 44 are expected to be delivered to the Company in 2014 and 10 within 2015. Upon completion of the above-mentioned transaction, the Company will also own up to 30% of Dorian LPG Ltd.