Sale of shares in BW Energy to BW Group

[escveritas]

Oslo, 22 January 2024 - BW Offshore Limited (“BW Offshore” or the “Company”) has today entered into an agreement with BW Group Limited (“BW Group”) to sell all of BW Offshore’s shares in BW Energy Limited (“BW Energy”). BW Offshore will sell 58,111,461 (22.52%) shares in BW Energy at a price of NOK 32 per share, resulting in total proceeds to BW Offshore of NOK 1,860 million or approximately USD 176 million.

The decision was taken by the independent directors of BW Offshore after assessing the Company’s strategy and other relevant factors, including external valuation advice. As previously communicated, BW Offshore does not consider the shareholding in BW Energy to be a long-term strategic investment.

CEO of BW Offshore Marco Beenen states: “We are pleased to have obtained a price for BW Energy that is close to the highest that the shares have historically traded, which became possible following the outcome of BW Group’s mandatory offer resulting in BW Group holding approximately 52% of BW Energy. This transaction strengthens our balance sheet and allows the continuation of a sustainable dividend that can potentially grow over time”.

Chairman of BW Group Andreas Sohmen-Pao comments: “Under BW Offshore’s current dividend policy, it would have taken over 7 years to distribute BW Offshore’s stake in BW Energy. This transaction clears a significant overhang on BW Energy shares, and we look forward to continued efforts to build the company and unlock shareholder value."

Completion of the transaction is expected to occur on or around 25 January 2024.