Singapore-based BW Group has purchased a majority stake in Epic Gas and launched an unconditional tender offer to acquire the remaining shares of the owner and operator of pressurized gas carriers.
According to Epic Gas, BW Group would acquire a minimum of 51% of its outstanding shares, including the purchase of all of the shares held by certain affiliates of Jefferies Financial Group and DVB SIIM. The company said it acquired 38.54 million shares in Epic Gas from the key shareholders representing 54.7% of the issued shares.
The subsequent unconditional tender offer was launched for a per share consideration equal to the sum of USD 1.60, plus an additional consideration equal to USD 3,500,000 divided by the total number of shares acquired, provided that the additional consideration will not be higher than USD 0.10 per share. The shareholders of Epic Gas have the period from March 19 to April 23 to accept the offer.
Subject to the final level of acceptances after the expiry of the offer period, BW Group intends for Epic Gas to maintain its listing on Merkur Market.
“The transaction represents an opportunity to acquire a well-managed company, led by Charles Maltby, and we look forward to working together to achieve successful growth in the service of our customers,” Andreas Sohmen-Pao, Chairman of BW Group, said.
Epic Gas, the largest commercial operator and second largest owner of small pressurized LPG carriers, has a fleet of 39 vessels ranging from 3,500 to 11,000 cbm that typically serves the short-haul or regional LPG and chemicals trade.
The company added that it has entered into a letter of intent to purchase modern second-hand LPG carriers. Epic Gas anticipates financing the acquisition with a combination of equity and debt. Should the transaction proceed, it may involve a share capital increase in Epic Gas that is currently estimated to be in the range between USD 50-60 million.