Scorpio Tankers is selling its 11 VLGC newbuilding contracts, plus a $1.9m cash consideration, to Dorian LPG for new shares representing a 30% stake in Dorian LPG, creating a new gas carrier giant.
Scorpio Tankers has so far paid $83.1m in downpayments on its newbuildings. Dorian LPG is targeting for an initial public offering in 2014.
"We are pleased with this investment in Dorian LPG on several fronts. We are participating in significant consolidation in the VLGC sector, creating - in Dorian - a preeminent owner/ operator of modern fuel efficient assets,” said Emanuele Lauro, chairman and ceo of Scorpio Tankers.
Dorian LPG has a fleet comprising three VLGCs and one pressurised LPG vessel, and has further three VLGCs on order for delivery in 2014 and 2015.
Scorpio Tankers announced its move into the VLGC sector in early July this year with an order for up to 10 VLGCs for $740m
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