Bermudian-based Avance Gas Holding Ltd has closed the $1.05 billion sale of its 12-strong fleet of very large gas carriers to Singapore-headquartered BW LPG Ltd.

The deal was first announced in August.

BW LPG, which had been registered in Bermuda since 2008, redomiciled to Singapore in July.

Avance completed delivery of the 12th and last vessel, with the 2023-built dual-fuel VLGC, Avance Avior, the last to be handed over in South Korea.

In connection with the delivery, 2.141 million shares in BW LPG were issued by the buyer to Avance Gas, which now holds 19.28 million shares in BW LPG and is thus the second largest owner.

This brings the total ownership share to 12.1 per cent of total issued shares and 12.7 per cent ownership adjusted for BW LPG’s treasury shares.

Avance Gas said it plans to distribute the shares to shareholders after the 40-day lock-up period has ended next month.

The company received net cash proceeds of approximately $30 million after repayment of outstanding debt.

Total net cash proceeds from the sale of all 12 VLGCs amounts to approximately $240 million, Avance said.

The total book gain after completion of the sale, based on a BW LPG net asset value of $17.25 per share, was previously estimated at $315 million, with $10 million attributed to depreciation savings.

Avance chief executive Oystein Kalleklev said: “With the closure of the transaction, we have become a substantial owner in BW LPG and as communicated in the past, the lock-up of these shares expires in February which coincides with our fourth quarter result presentation where we intend to distribute these shares to our Avance Gas shareholders.

“In general, Avance Gas shareholders can expect that they will receive one BW LPG shares for every four Avance Gas share they hold.”

He added: “The company plans to distribute all cash as well as the BW LPG shares to its shareholders prior to winding up.”

Mr Kalleklev said the company has called a special general meeting on February 5 for approval of a capital reduction.