Epic Gas and Lauritzen Kosan to combine fleet and businesses
Epic Gas Ltd., a leading LPG shipping solutions company, and Lauritzen Kosan A/S, the gas carrier division of J. Lauritzen, have entered into a transaction agreement to combine their fleet and business activities to create BW Epic Kosan.
Combination creates a world leader in last mile delivery of LPG and other speciality gases and petrochemicals: Lauritzen Kosan will contribute 34 gas carriers to EpicGas’s fleet of 43 pressurised gas vessels, in addition to certain other assets,in exchange for new shares in Epic Gas equivalent to a 27% stake.
BW Epic Kosan will have greater scale and synergies across the organisation–the combined fleet of 77 LPG/ethylene vessels will range in size from 3,500 cbm to 12,000 cbm.53 of the vessels will be wholly owned, with a Gross Asset Value of USD 900million. The combined organisation will have significant commercial and technical capability across pressurised, semi-refrigerated, refrigerated gas and petrochemical transportation.
Enhanced global reach–ouraim isto deliver leading service and operational standards to our combined global customer base. BW Epic Kosan will be headquartered in Singapore, withCopenhagen as a regional officealongside offices in London, Manila, and Tokyo. EpicGas’s current CEO Charles Maltby will be CEO of the combined entity, Lauritzen Kosan’s CEO Thomas Wøidemann will lead the commercial organisation, and Epic Gas CFO Uta Urbaniak-Sagewill be CFO. The team will be built on the strengths of both organisations.
Reduced cost of finance-As a part of this transaction, BW Epic Kosan has secured committed finance forthe Lauritzen Kosan fleet at USD 155 million from SEB, Danske Bank, Nordea, Danish Ship Finance and CréditAgricoleCIB.
Strong shareholder base-Post-completion, BW Group will be the largest shareholder in BW Epic Kosan with 58%, followed by J. Lauritzen A/Swith 27%, Tailwind, and Epic’s existing minority shareholders. The shares will continue to trade on Euronext Growth Oslo as EPIC.
Completionof the transaction is subject to obtaining necessary competition clearances, as well as other customary closing conditions. The transaction is expected to close by the end of Q1 2021.
Lauritzen Kosan was advised on the transaction by SEB Corporate Finance.
About Lauritzen Kosan
Lauritzen Kosan is a global, fully integrated owner and operator of gas carriers established in 1989 through the acquisition of pioneering gas carrier owner Kosan Tankers by J. Lauritzen, and today has over 65 years of experience in the specialised gas carrier industry. Customer base comprises the world’s largest and most demanding energy and petrochemical companies. Operates 34 gas carriers, of which 14 are wholly owned, three are 50% owned, four on sale-leaseback, four on bareboat charter, one on time-charter and eight vessels in commercial management.
About Epic Gas
Epic Gas owns and operates a fleet of fully pressurised gas carriers providing seaborne services for the transportation of liquefied petroleum gas and petrochemicals. The company controls a fleet of 43 vesselswhich serve the international supply chains of leading oil majors and commodity traders throughout Asia, Europe, Africa, and the Americas. The Company’s shares are traded over the Euronext Growth Oslounder the ticker “EPIC”.
