Epic Gas and Lauritzen to combine their fleet to create BW Epic Kosan
The gas carrier division of J Lauritzen, LPG shipping heavyweight Epic Gas, and Lauritzen Kosan A/S, have entered into an agreement to merge their fleet and business activities to create BW Epic Kosan.
In the last mile of supply of LPG and other speciality gases and petrochemicals, the combination will create a true powerhouse.
Under the deal, in exchange for new shares in Epic Gas equal to a 27% stake, Lauritzen Kosan will contribute 34 gas carriers to the Epic Gas fleet of 43 pressurized gas vessels in addition to some other assets.
The new business will have its headquarters in Singapore, with a regional office in Copenhagen alongside offices in London, Manila and Tokyo.
Charles Maltby, the current CEO of Epic Gas, will be CEO of the merged company, Thomas Wøidemann, CEO of Lauritzen Kosan, will lead the commercial organization, and Uta Urbaniak-Sage, CFO of Epic Gas.
The combined fleet of 77 LPG/ethylene vessels will be provided by BW Epic Kosan, ranging in size from 3,500 cbm to 12,000 cbm.
Of these, 53 vessels, with a gross asset value of $900 million, will be wholly owned.
As part of this deal, BW Epic Kosan secured dedicated financing of $ 155 million from SEB, Danske Bank, Nordea, Danish Ship Finance and Crédit Agricole CIB for the Lauritzen Kosan fleet.
After completion, with 58 percent, BW Group will be the largest shareholder in BW Epic Kosan, followed by J. Lauritzen A/S with 27%, Tailwind, and the current minority shareholders of Epic. The shares will continue trading as EPIC on Euronext Growth Oslo.
Maritime Business World