Dorian LPG Ltd. has entered into an agreement with Scorpio Tankers Inc. whereby Scorpio Tankers will contribute its entire Very Large Gas Carrier ("VLGC") newbuilding contracts, together with a cash contribution of $1.9 million, in exchange for newly issued shares representing 30% of Dorian's pro-forma outstanding shares immediately following the transaction. As of the date of the transaction, Scorpio Tankers will have paid $83.1 million in installment payments for the 11 VLGC contracts.
As part of the transaction, the Company will grant Scorpio Tankers certain protection rights customary for significant shareholders, which will terminate upon Dorian LPG's listing on the NYSE or NASDAQ, which is expected to take place within 2014.
John Hadjipateras, Chairman of the Board of Dorian LPG commented: "We welcome Scorpio Tankers as our major investor and are pleased to have their vote of confidence in contributing to Dorian LPG all of their VLGC newbuilding contracts. The consolidation of these additional, high quality, fuel-efficient, ECO newbuildings further enhances and validates our commitment to be a very high quality owner and operator in this sector of LPG transportation."
The above-mentioned transaction, which is subject to the execution of definitive agreements and satisfaction of customary closing conditions, is expected to close within the fourth quarter of 2013, at which time the Company anticipates to commence a capital raise.