New York-listed DHT will finance the acquisition by issuing approximately $256m of DHT capital stock, consisting of around 32m shares of common stock and 15,700 shares of preferred stock that are mandatorily convertible into 15.7m shares of common stock.
DHT will also pay BW Group $177.6m in cash and assume around $104.16m in remaining obligations with respect to the two newbuildings.
Upon completion of the deal, BW Group and its affiliates will own approximately 33.5% of DHT’s outstanding share capital and will be granted customary rights.
“DHT already has a modern and high quality fleet, and the addition of BW’s 11 VLCCs including newbuildings will make the company one of the world’s largest independent VLCC owners,” said Carsten Mortensen, ceo of BW Group.
DHT expects that BW Group’s VLCC fleet will be delivered during the second quarter of this year. DHT will then have a fleet of an average age of 6.9 years consisting of 30 VLCCs including four newbuildings for delivery in 2018, and two aframaxes.
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