Stolt-Nielsen and Sungas Sell Stake in Avance Gas
- Business & Finance
Stolt-Nielsen Gas, a subsidiary Norway’s liquid bulk transporter Stolt-Nielsen Limited, and Sungas Holdings have agreed to sell up to 5 million common shares in Avance Gas Holding, expected to fetch up to USD 81 million.
Stolt-Nielsen Gas and Sungas have sold or agreed to sell 2,500,000 common shares in Avance Gas each, representing around 7.1% of the shares in issue, by way of an accelerated bookbuild offering to institutional and other professional investors. The shares were sold at a price of NOK 122 (USD 16.2 USD) per share.
By this transaction, both companies reduced their ownership in Avance Gas from previous 14.1% to around 7%.
Back in November 2010, Stolt-Nielsen Gas has reached an agreement with Sungas by which Sungas would become a 50% shareholder in Avance Gas, which was at the time wholly owned by Stolt-Nielsen Gas.
As part of the transaction, Avance Gas acquired three very large gas carriers from Sungas. The three VLGCs from Sungas were added to the fleet of Avance Gas, which at the time owned one VLGC.
Avance Gas currently owns and operates nine VLGCs. The company has five VLGCs under construction at Jiangnan Shipyard in Shanghai with deliveries Q2 and Q3/2015.