Scorpio Tankers Announces Investment in Dorian LPG
- Business & Finance
Scorpio Tankers Inc. today announced that it has entered into an agreement with Dorian LPG Ltd. (Dorian) whereby the Company will contribute its entire fleet of newbuilding Very Large Gas Carriers, or VLGCs, together with a cash contribution of $1.9 million in exchange for newly issued shares representing 30% of Dorian’s pro-forma outstanding shares immediately following the transaction. As of the date of the transaction, the Company will have paid $83.1 million in installment payments for the 11 VLGC contracts.
As part of the transaction the Company will obtain certain protection rights customary for significant shareholders, which will terminate upon Dorian’s initial public offering and listing on a national securities exchange, which is expected to take place within 2014.
Emanuele Lauro, Chairman and CEO of Scorpio Tankers, commented: “We are pleased with this investment in Dorian LPG on several fronts. We are participating in significant consolidation in the VLGC sector, creating — in Dorian — a preeminent owner/ operator of modern fuel efficient assets. As important, we expect our shareholders will ultimately benefit both from the expected growth of seaborne LPG demand and the success of Dorian LPG as a highly reputable, US listed security.”
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. Perella Weinberg Partners LP acted as financial advisor to the Company.
Scorpio Tankers, October 28, 2013