Avance Gas Holding Ltd. announced the successful sale and delivery of the first VLGC, the 2015-built non-scrubber ship Chinook, to BW LPG Ltd. As part of the transaction, 1.35 million shares in BW LPG have been issued to Avance Gas corresponding to approximately 1% ownership share. Once, the transaction is finalized and all shares has been received, Avance Gas will be the second largest shareholder in BW LPG with approx. 12.8% ownership share.

These consideration shares will have a lock-up period of 40 days from being received as previously announced, but otherwise are fully ordinary shares. In connection with the sale, the ship mortgage has been repaid and The company expects to receive net cash proceeds of $18.5 million, in addition to the 1.35 million consideration shares in BW LPG. The vessel is currently on a variable Time Charter with an energy major expiring in mid-2025 and this Time Charter has also been successfully novated to BW LPG.

The eleven remaining vessels are scheduled for delivery to BW LPG prior year-end. As of today, eight vessels are expected to be delivered to BW LPG in November while the remaining three VLGCs are expected to be delivered in December. Two of the ships are subject to closing procedures in connection with novation of lease while customary closing procedures under the Memorandum of Agreements applies to all ships.