Scorpio Tankers Sells Remaining Stake in Dorian in Second Share Sale Within a Week

by Ship & Bunker News Team
Monday July 27, 2015

Scorpio Tankers Inc. (Scorpio Tankers) Thursday announced that it has agreed to the sale of its last remaining 3,392,083 common shares of Dorian LPG Ltd. (Dorian) to Sino Energy Holdings LLC at a rate of $16.16 per share, the second such sale by the company within a week.

On July 19, Scorpio Tankers announced the sale of 6 million common shares of Dorian to BW Group Limited's subsidary, BW Euroholdings Limited, at a purchase price of $15.34 per share.

The two sales mean that Scorpio Tankers will no longer hold its 16 percent stake in Dorian.

"This takes the total proceeds to Scorpio Tankers from the sale of the Dorian stake to $147 million, which we believe will go toward distributions to shareholders or further growth," said Fearnleys Securities AS (Fearnleys) in a statement on the sale, as reported by Shipping Watch.

"We expect to see the company continue to ramp up its dividend payments, particularly after its divestment of the Dorian stake."

In May, Scorpio Tankers announced it purchased four LR2 product tankers currently under construction at a cost of approximately $60.0 million each.