BW LPG Buys 12 Gas Carriers from Avance Gas for $1.05 Billion

(Reuters) — BW LPG said on Thursday it had agreed to buy 12 Very Large Gas Carriers (VLGC) from Avance Gas for $1.05 billion.

BW LPG said the deal would be partly funded by around $585 million in cash and issuing 19.282 million new shares to Avance Gas, which would then give it a roughly 13% stake in BW LPG, it said in a statement.

The acquisition will increase the number of BW LPG's owned and operated VLGCs to 53 from 41, it said.

The vessels are scheduled to be delivered between Sept. 15 and Dec. 31, Avance Gas said in a separate statement.

Shares in Avance Gas traded 10.8% higher while BW LPG's shares fell 0.8% shortly after the announcement.

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