Andreas Sohmen-Pao is looking to take another of his companies off Oslo markets, this time floating wind outfit BW Ideol.
In its third-quarter earnings release, BW Ideol’s leading shareholder, BW Offshore, expressed doubts it could continue raising equity on the Euronext Growth Oslo exchange without hurting existing shareholders.
“The offer and plan to take the company private reflects that the initiating shareholders consider it unlikely that BW Ideol… will be able to raise new equity on terms that are not highly dilutive for non-participating shareholders in the current equity capital market environment,” BW Offshore said.
“The initiating shareholders believe that BW Ideol, if privately held, would benefit from reduced cost and more management time to progress the company.”
It said the BW Ideol could focus on raising capital from private sources interested in growth companies and industrials given the potential for dilution on the equity market and unsatisfactory debt financing terms.
BW Offshore owns 53.2% of BW Ideol, which began trading in 2021.
The Oslo-listed floating production, storage and offloading unit owner is one of several shareholders, representing nearly 85% of BW Ideol’s investors, that launched the take-private offer on 9 November with the offer period running from 14 November until 28 November.
The other investors were not disclosed, but a Kerogen Capital fund is the second-largest shareholder with just under 8% of the company and French family office Noria in third with 6.8%.
Chief executive Paul de la Gueriviere owns 6.2% of BW Ideol.
The BW Ideol offer follows a late October move to take LPG carrier owner BW Epic Kosan private in a deal backed by J Lauritzen, Nicholas Lykiardopulo and BW Group — the largest shareholder in BW Offshore with nearly half of all shares.
Both come 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 that the weakened Norwegian krone was hurting the Oslo Stock Exchange and that “the statistics are starting to clearly support US listings”.
BW LPG is said to be working on a New York listing, as well.
As it stands, $1 is equal to approximately NOK 10.85, with a 52-week high of NOK 11.28.
Third quarter results
For the three months ending on 30 September, BW Offshore reported a $29m profit for the quarter, down slightly from the $29.6m recorded in the same period last year.
The third quarter 2023 performance was backed by $156m in revenue and a 9.6m gain on the Abo FPSO (built 1976), which can produce up to 44,000 barrels per day, sold for $20m to Nigeria’s STAC Marine Offshore in September.
It said it would finish divesting its non-core FPSOs by the end of the year after selling four others in addition to the Abo FPSO this year and sending a sixth to the breakers.
The effort leaves the company with four FPSOs, with a fifth, the Barossa, under construction.
BW Offshore said the hull is 98% complete, the topside is at 86%, and the turret and mooring system have reached 92% completion
The vessel is on schedule for first gas in early 2025, it said.