Andreas Sohmen-Pao’s BW Group is launching an offer for subsidiary BW Energy, raising the prospect of yet another BW company being delisted in Oslo.
A stock exchange filing reveals that BW Group bought 250,000 shares on Wednesday in the oil exploration and production company for around NOK 5.9m ($558,000).
BW Group now has 40% of the company, the level at which a mandatory offer must be made.
The Singapore-based group said it would launch its bid within four weeks.
There is no specific mention of a delisting in the filing, but the group already holds a combined 63.3% before the offer, including BW Offshore’s stake, meaning share liquidity is limited.
Following the BW Energy IPO in 2020, floating production, storage and offloading vessel subsidiary BW Offshore had 38.8% and BW Group 35.1%.
BW Offshore has cut its stake to 23.3% since then through paying in-kind dividends of BW Energy shares.
BW Group, as a 49.9% shareholder in BW Offshore, saw its BW Energy stake rise to 39.9% as a result.
The parent said the decision to trigger the offer was aimed at enabling BW Offshore to continue with the dividend policy.
Sohmen-Pao is the BW Energy chairman.
BW Group has retained DNB Markets as its financial adviser.
Other companies leaving the exchange
BW Energy holds majority interests in three hydrocarbon licences in Gabon, Brazil and Namibia.
BW Group has been contacted for further comment.
The shipowning giant is already delisting LPG carrier owner BW Epic Kosan and floating offshore wind company BW Ideol in Oslo.
The group has expressed doubt about whether BW Ideol could continue raising equity on the bourse without hurting existing shareholders.
Both moves came after comments Sohmen-Pao made at the Pareto Securities Energy Conference in Oslo in September, in which he fretted that New York-listed competitors are seeing improved share liquidity versus his seven Oslo-listed shipping outfits.
The Singaporean mogul said Oslo investors understand shipping in ways those in other regions do not, but the weakened Norwegian krone was hurting the Oslo Stock Exchange and “the statistics are starting to clearly support US listings”.
Oslo-listed VLGC owner BW LPG is working on a secondary New York listing, as are BW Group-controlled Hafnia and the Alafouzos family’s Okeanis Eco Tankers.
In another blow for the Oslo bourse, Norway’s Rieber family is delisting its offshore wind vessel company GC Rieber Shipping after a share offer raised its ownership close to 100%.
