BW LPG completes acquisition of VLGC fleet from Avance Gas

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BW LPG has taken delivery of the final vessel, BW Avior. Credit: AlexLMX / Shutterstock.

BW LPG has completed the $1.05bn acquisition of 12 very large gas carriers (VLGCs) from Avance Gas, following the delivery of the final vessel, BW Avior.

The acquisition was settled with a combination of cash, novation of sale-leaseback agreements, and share issuance, with the shares each priced at $17.25.

BW LPG has issued 2.141 million new shares to Avance Gas as part-consideration for the BW Avior vessel. This issuance increases the total number of BW LPG shares to 159.282 million, with a share capital of $619.867m.

Avance Gas now holds approximately 12.11% of BW LPG, with 19.282 million shares in its possession.

Upon completion of the transaction, BW LPG’s liquidity is estimated at $552m, as reported in its Q3 earnings release.

BW LPG CEO Kristian Sorensen said: “I am very pleased to announce the successful closing of the transaction and the commencement of revenue generation from our additional 12 VLGCs.

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“I thank the Avance Gas team for ensuring an efficient and seamless handover process. We have issued 15% more shares to expand our owned fleet by 40% and through our enlarged fleet we are enhancing our commercial scale and operational leverage.”

The company has 14 unencumbered vessels, which may be financed this year. BW LPG now operates 53 VLGCs, including 22 LPG dual-fuel vessels.

The company will continue its balanced chartering strategy, aiming to cover 35%-40% of its fleet capacity with time charters and freight forward agreements.

BW LPG now boasts a combined carrying capacity of more than three million cubic metres across its VLGC fleet.

In November 2024, Avance Gas delivered its fourth VLGC to BW LPG. The 2015-built vessel, named Passat, features a scrubber.