23rd December 2020 ,Oslo /Singapore /Copenhagen :Epic Gas Ltd. (ticker "EPIC",Epic Gas or "the Company"), a leading LPG shipping solutions company, and Lauritzen Kosan A/S ("Lauritzen"), the gas carrier division ofJ. Lauritzen , today announce that they have entered into a transaction agreement to combine their fleet and business activities to create BW Epic Kosan. o Combination creates a world leader in last mile delivery of LPG and other speciality gases and petrochemicals: Lauritzen Kosan will contribute 34 gas carriers toEpic Gas's fleet of 43 pressurised gas vessels, in addition to certain other assets, in exchange for new shares inEpic Gas equivalent to a 27% stake. o BW Epic Kosan will have greater scale and synergies across the organisation - the combined fleet of 77 LPG/ethylene vessels will range in size from 3,500 cbm to 12,000 cbm. 53 of the vessels will be wholly owned, with a Gross Asset Value ofUSD 900 million . The combined organisation will have significant commercial and technical capability across pressurised, semi-refrigerated, refrigerated gas and petrochemical transportation. o Enhanced global reach - our aim is to deliver leading service and operational standards to our combined global customer base. BW Epic Kosan will be headquartered inSingapore , withCopenhagen as a regional office alongside offices inLondon ,Manila , andTokyo .Epic Gas's current CEOCharles Maltby will be CEO of the combined entity, Lauritzen Kosan's CEOThomas Wøidemann will lead the commercial organisation, and Epic Gas CFOUta Urbaniak-Sage will be CFO. The team will be built on the strengths of both organisations. o Reduced cost of finance - As a part of this transaction, BW Epic Kosan has secured committed finance for the Lauritzen Kosan fleet atUSD 155 million from SEB,Danske Bank , Nordea, Danish Ship Finance and Crédit Agricole CIB. o Strong shareholder base - Post-completion,BW Group will be the largest shareholder in BW Epic Kosan with 58%, followed by J. Lauritzen A/S with 27%, Tailwind, and Epic's existing minority shareholders. The shares will continue to trade on Euronext Growth Oslo as EPIC. o Completion of the transaction is subject to obtaining necessary competition clearances, as well as other customary closing conditions. The transaction is expected to close by the end of Q1 2021. o Lauritzen Kosan was advised on the transaction by SEB Corporate Finance. CommentAndreas Sohmen-Pao , Chairman ofEpic Gas , says: "This transaction combines two well reputed operators into a strong new entity in the sector. We welcome our colleagues from Lauritzen Kosan and look forward to working together to build a great company delivering cleaner energy and feedstock to communities around the world."Tommy Thomsen , CEO of theLauritzen Foundation and Chairman of Lauritzen Kosan, says: "We are delighted to be partnering withBW Group and other Epic shareholders. This will help to improve operational efficiencies and deliver an enhanced service offering to our customers. With a large and modern fleet spanning LPG and other petrochemical gases, BW Epic Kosan will be well positioned to deliver value for customers, while meeting IMO objectives for decarbonisation." Ends - Please refer to the attached press release for further details.Epic Gas Ltd. www.epic-gas.com ir@epic-gas.com
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