Odfjell Gas Shipowning AS, a subsidiary 100% owned by Odfjell SE, entered into a transaction agreement with BW Epic Kosan Ltd. (BWEK) for the sale of two LPG/Ethylene carriers, Bow Guardian and Bow Gallant, both built in Korea in 2008.
The purchase price will be settled partly in cash, to be used for the full repayment of mortgaged loans on the vessels, and partly by the issuance of 6,889,611 freely transferable shares in BWEK. Following the transaction, Odfjell will own 4.3% of the shares in BWEK.
The transaction is expected to close prior to October 31, 2021. Pursuant to the transaction agreement, an additional consideration of up to 362,611 shares in BWEK can be received subject to certain conditions being fulfilled during an 18-month period from delivery of the vessels.
The transaction concludes Odfjell SE’s exit from the gas segment and the shareholding in BWEK will be considered as a non-strategic financial investment.
The transaction is expected to generate a minor positive contribution to Odfjell’s P&L and will also have a positive impact on the company’s balance sheet.