BW Group and Ultranav International have paved the way for sell-downs in US-listed LPG carrier company Navigator Holdings.
The two major shareholders said in a US Securities and Exchange Commission filing that their entire stakes worth a combined $552m have been registered for sale from time to time.
Norwegian investment bank Fearnley Securities said it viewed the move as a technicality at this stage.
But the two sides are now in a position to offload shares through public or private transactions.
Up to 42.565m shares could be sold, with Singapore’s BW having a 29.8% stake worth $284m, and Chile’s Ultranav owning a 28.1% slice valued at $268m.
Navigator said it would not receive any proceeds from share sales.
The shipowner’s market cap is $953m. Navigator is the biggest owner of midsize LPG carriers.
The Navigator share was trading at $11.29 a year ago and is worth $12.76 in New York now.
Fearnley Securities has a “buy” rating on the stock and a target price of $19 per share.
BW Group became an investor in 2020, when it bought the 39.1% stake held by private-equity player WL Ross & Co.
Chilean coup for Navigator
The following year, Navigator took over the 18-ship fleet of Ultranav’s Ultragas in a $390m deal, with the Chilean company receiving shares in payment.
Both BW and Ultranav have been contacted for comment.
Earlier in June, Navigator and shipowner Bumi Armada signed a preliminary deal that could see them create a joint venture to offer shipping and injection services in the UK’s carbon capture and storage (CCS) market.
The memorandum of understanding between Navigator and the Malaysian floating energy infrastructure specialist involves the creation of Bluestreak CO2.
The new company, in which the two shipowners would each have 50% stakes, would offer end-to-end solutions for carbon emitters to capture, transport, sequester and store CO2 under the UK’s Industrial Decarbonisation Strategy.
