OSLO, NORWAY: BW Offshore Limited (BWO) has retained Citigroup Global Markets Limited and Pareto Securities AS to explore a potential block sale of existing shares in BW Energy Limited (BWE) through a private placement.
BW Offshore Limited is contemplating selling 20 shares in BWE Energy, representing approximately 7.8 per cent of the shares outstanding in BW Energy, through an accelerated bookbuilding process.
BW Offshore Limited reserves the right, at its own discretion, not to sell any shares in the offering. The offering commenced on Thursday and will close no later than 29 October 2021.
BW Offshore currently holds 90.84 million shares in BW Energy, representing approximately 35.2 per cent of the shares outstanding in BW Energy. BW Offshore will enter into a 6-month customary lock-up with the managers following the completion of the offering for any of the shares BW Offshore currently holds in BW Energy, which are not sold as part of the offering.
In February 2020, BW Energy was spun off from BW Offshore and listed on the Oslo Stock Exchange. BWO is very pleased with the development of BWE into a robust and independent E&P company. However, BWO has decided to divest part of its shareholding in BWE to accelerate growth in core business areas.
The net proceeds to BWO from the offering will be used for further growth opportunities within energy infrastructure, including FPSO and renewable energy investments, as well as other general corporate purposes.
BWO will following completion of the Offering remain a committed and supportive partner to enable BWE to deliver on its growth strategy.
BW Group Limited (BWG), which currently directly owns approximately 35.1% of BWE and approximately 49.9% of BWO, has pre-committed to subscribe for up to USD 20 million in the Offering. However, in the case of strong demand, BWG may be scaled back to improve the overall free float in BWE’s shares.
Andreas Sohmen-Pao is the chairman of the board of directors of BWG, BWO and BWE. Marco Beenen is the CEO of BWO and a member of the board of directors of BWE. Carl Arnet is the CEO of BWE and a member of the board of directors of BWO.
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