BW LPG proposes to combine with Dorian LPG in $1.1 billionStaff Writer | May 30, 2018
BW LPG announced a proposal to combine with Dorian LPG in an all-stock transaction. Dorian shareholders would receive 2.05 BW LPG shares for each Dorian share.
Merger BW LPG intends to dual-list
The proposal is supported by BW Group, which owns 14.2% of Dorian and approximately 45% of BW LPG.
BW LPG’s proposal to acquire Dorian represents a value of $7.86 per share of Dorian common stock based on BW LPG’s closing share price of NOK 31.42 on May 28, 20181.
The total equity value of the transaction is approximately $441 million on a NAV to NAV basis and the total enterprise value is $1.1 billion, including the assumption of net debt.
The proposal represents a premium of 13% to the closing Dorian share price on May 25, 2018 of $6.96 per share; a premium of 15% to the long-term historical exchange ratio of Dorian and BW LPG since Dorian’s IPO; and an EV to EBITDA multiple of 13.9x based on reported LTM EBITDA to December 31, 2017. ■