KUALA LUMPUR, June 27 (Bernama) -- The world's leading owner and operator of LPG vessels, BW LPG Ltd sent an open letter to the Dorian LPG Board of Directors regarding BW LPG´s proposal to combine with Dorian, under which Dorian shareholders would receive 2.05 BW LPG shares for each Dorian share.
Based on BW LPG´s current price of US$4.17 (RM16.80) as of June 25, BW LPG´s proposal to combine with Dorian represents a value of US$8.55 (RM34.43), a 22.9 per cent premium to Dorian´s unaffected share price of US$6.96 (RM28.03) as of May 25. On a pro forma basis for the year ended December 31, 2017, Dorian would have contributed 33 per cent of revenue, 38 per cent of EBITDA and 40 per cent of free cash flow while its shareholders would receive a 45 per cent stake in the combined entity, a statement said. The overall market response has been positive and reflective of the significant benefits of the proposed combination including the creation of a leading VLGC player, significant synergies, increased market capitalization, cash flow accretion, liquidity for Dorian shareholders and a stronger credit profile. BW LPG has communicated with a significant percentage of Dorian´s shareholder base and the response of shareholders to the proposed transaction has been overwhelmingly positive. Several Dorian shareholders have publicly declared their support for the transaction by sending open letters to the Dorian Board of Directors expressing their views that the proposal is in the best interest of Dorian shareholders. BW LPG Chief Executive Officer, Martin Ackermann said: "We urge Dorian´s Board of Directors to respond to its shareholders and engage with us. He added it is clear that both companies´ shareholders recognize the compelling benefits of the proposed combination. "We believe that a discussion between Dorian and BW LPG would be appropriate to address any questions Dorian may have about our proposal and we are ready to meet with them, " he said. Read full text of the letter at http://www.bwlpg.com/ --BERNAMA
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