Avance Gas Holding Ltd. (Avance Gas) (OSE: AGAS) refers to the announcement on August 15, 2024, to sell its VLGC fleet to BW LPG Ltd for $1,050 million.
On November 1, 2024, the Company announced the first VLGC delivery, and today Avance Gas announced the second VLGC delivery, the 2022-built dual-fuel ship Avance Capella. Avance Capella was under a sale-leaseback agreement, which has been successfully novated to the Buyer. As a part of the transaction, an outstanding lease obligation of $64.4 million has been novated to BW LPG. In connection with the delivery, 2.1 million shares in BW LPG were issued by the Buyer to Avance Gas. Additionally, the Company also received net cash proceeds of $15 million. Following the delivery, Avance Gas owns 3.45 million shares in BW LPG corresponding to a 2.4% ownership share. These consideration shares have a lock-up period of 40 days from the issuance date as previously announced.
The ten remaining vessels are scheduled for delivery to BW LPG prior year-end. As of today, three deliveries are expected to be delivered in November while the remaining seven are expected to be delivered in December.
Avance Gas will issue regular press releases in connection with the remaining deliveries and the Company will revert with more information in its third quarter results presentation scheduled on November 27, 2024.