ATHENS: Scorpio Tankers has sold its remaining 5.8% stake in NYSE-listed Dorian LPG through the sale of its 3,392,083 common shares to Sino Energy Holdings for a price of $16.16 per share or around $58.82m in total.
The shares are expected to be delivered to Sino Energy on or around July 29. The purchase price shows progress on the $15.34 per share paid by BW Group, which purchased 6m shares in Dorian LPG from Scorpio on Monday this week. The shares were acquired through BW’s subsidiary BW Euroholdings, which now holds a 10.2% stake in Dorian.
Together, Scorpio’s two share sales transactions this week have generated total proceeds of $146.9m. “The [Dorian] shares were payment to STNG [Scorpio Tankers] for the profitable sale of its VLGC newbuildings to LPG last year, but we never viewed the ‘investment’ as strategic. Rather, the stake had become a forgotten piece of STNG’s capital structure given concerns about the liquidity of the equity,” Jonathan Chappell, chief fundamental research analyst at Evercore ISI, said of the sale in a note today.
