Global maritime giant BW Group has revealed plans to segregate BW Energy, its oil and gas exploration arm, from its maritime businesses. This decision marks a significant step in BW Group’s ongoing corporate restructuring process.
As of now, BW Group holds a substantial stake in BW Energy, amounting to 74.38% of the issued and outstanding shares and voting rights in the company, totaling 191,903,110 shares.
The separation of BW Energy from the maritime businesses under BW Group’s umbrella is part of a broader corporate restructuring initiative. However, it’s important to note that this restructuring will not alter the ultimate control of the business. The shares of BW Energy currently held by BW Group, which is under the control of Andreas Sohmen-Pao through a trust, will be divested to BW Energy Holdings. This new entity is owned and controlled by Sohmen-Pao.
The Oslo Stock Exchange, serving as the takeover supervisory authority, has approved an exemption from the mandatory bid obligation under the Norwegian Securities Trading Act concerning this restructuring. The decision, dated May 3, 2024, paves the way for the smooth execution of the strategic realignment.
The restructuring process is anticipated to conclude by July 31, 2024. As per the terms, the sales price will correspond to the carrying value of the BW Energy shares as recorded in BW Group’s books at the time of the transfer.
Andreas Sohmen-Pao, Chairman of both BW Group and BW Energy Holdings, emphasized that this restructuring is merely a technical maneuver with no bearing on the core business or strategic direction of BW Energy. It follows the mandatory offer from BW Group and subsequent share acquisition of BW Energy shares from BW Offshore Limited.
BW Energy, headquartered in Oslo and listed on the Oslo Stock Exchange since February 2020, has rapidly expanded its presence since its inception in 2016. The company has strategically diversified its oil and gas portfolio, with significant interests in offshore assets located in West Africa and Brazil. Presently, BW Energy holds majority stakes in three hydrocarbon licenses situated in Dussafu, Gabon; Maromba, Brazil; and Kudu, Namibia.
The move to separate BW Energy underscores BW Group’s commitment to optimizing its corporate structure and focusing on the distinct needs and potentials of its various business segments.
Source:Offshore engineer
