London, 22 January 2024, (Oilandgaspress): – Reference is made to the announcement published by BW Offshore Limited (“BW Offshore”) on 22 January 2024 regarding the sale of all of BW Offshore’s shares in BW Energy Limited (“BW Energy”) to BW Group Limited (“BW Group”).
As further described in the abovementioned announcement, BW Offshore has today, 22 January 2024, agreed to sell 58,111,461 BW Energy shares to BW Group at a price of NOK 32 per share. Completion of the transaction is expected to occur on or about 25 January 2024.
BW Group and BW Offshore are close associates to a primary insider in BW Energy and are therefore pursuant to the disclosure requirements in article 19 of the Regulation EU 596/2014 (the EU Market Abuse Regulation) and section 5-12 of the Norwegian Securities Trading Act required to disclose transactions made in securities in BW Energy. The primary insider is the chairman of the board of directors of BW Energy.
Please refer to the attached notification of trading for further details.
Disclosure of shareholding:
Following the purchase of 58,111,461 shares in BW Energy, BW Group’s shareholding in BW Energy has increased to 191,903,110 shares, representing an increase from approx. 51.86% to approx. 74.38% of the issued share capital and voting rights in BW Energy.
Following the sale of all its 58,111,461 shares in BW Energy, BW Offshore will reduce its shareholding from 22.52% to zero and will no longer own any shares or hold any voting rights in BW Energy. BW Offshore has indirect exposure to 353,425 shares in BW Energy through a total return swap agreement with expiry date 5 April 2024.
BW Offshore: Sale of shares in BW Energy to BW Group
Oslo, 22 January 2024 – BW Offshore Limited (“BW Offshore” or the “Company”) has today entered into an agreement with BW Group Limited (“BW Group”) to sell all of BW Offshore’s shares in BW Energy Limited (“BW Energy”). BW Offshore will sell 58,111,461 (22.52%) shares in BW Energy at a price of NOK 32 per share, resulting in total proceeds to BW Offshore of NOK 1,860 million or approximately USD 176 million.
The decision was taken by the independent directors of BW Offshore after assessing the Company’s strategy and other relevant factors, including external valuation advice. As previously communicated, BW Offshore does not consider the shareholding in BW Energy to be a long-term strategic investment.
CEO of BW Offshore Marco Beenen states: “We are pleased to have obtained a price for BW Energy that is close to the highest that the shares have historically traded, which became possible following the outcome of BW Group’s mandatory offer resulting in BW Group holding approximately 52% of BW Energy. This transaction strengthens our balance sheet and allows the continuation of a sustainable dividend that can potentially grow over time”.
Chairman of BW Group Andreas Sohmen-Pao comments: “Under BW Offshore’s current dividend policy, it would have taken over 7 years to distribute BW Offshore’s stake in BW Energy. This transaction clears a significant overhang on BW Energy shares, and we look forward to continued efforts to build the company and unlock shareholder value.”
Completion of the transaction is expected to occur on or around 25 January 2024.
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