Singapore giant BW Group is splitting off oil exploration and production company BW Energy from its shipping businesses.
BW Group owns 74.38% of the Oslo-listed operation after a mandatory offer saw it buy shares from its floating production storage and offloading affiliate, BW Offshore, earlier this year.
“As part of a corporate restructuring, BW Group is planning to separate BW Energy, as an oil and gas exploration business, from the maritime businesses held by BW Group,” the company said in a filing.
This will not involve any change to the ultimate control of the business.
BW Group principal and chairman Andreas Sohmen-Pao’s BW Energy Holdings will buy the company.
The Oslo Stock Exchange has granted an exemption from the mandatory bid obligation that would otherwise have been involved in the restructuring.
Sohmen-Pao said: “Following the completion of the mandatory offer from BW Group and subsequent share acquisition of BW Energy shares from BW Offshore, this restructuring is a technical step with no impact on the business or strategy of BW Energy.”
BW Energy has a market cap of $649m.
The deal is expected to be done by 31 July.
BW Group also controls shipowners like BW LPG, Hafnia, Cadeler and BW Epic Kosan.
January offer
In January, BW Offshore agreed with BW Group to sell all of its shares in BW Energy.
The FPSO owner offloaded 58.1m (22.5%) shares in the Oslo-listed company for NOK 32 per share, resulting in total proceeds of NOK 1.86bn or around $176m.
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, according to a statement.
Sohmen-Pao said at the time: “Under BW Offshore’s current dividend policy, it would have taken over seven years to distribute BW Offshore’s stake in BW Energy.”
BW Group has said it reserves the right to delist BW Energy from the Oslo Stock Exchange.
The group has been focusing more on the US stock market for its companies.
BW LPG has just launched a dual-listing in New York, while LPG carrier owner BW Epic Kosan was delisted in Oslo.
