Small-scale midstream LNG and bioLNG company, Avenir LNG has refocused its business.
Avenir also said that it was exploring the possibility of raising capital in addition to a potential listing on Euronext Growth Oslo.
The company plans to sell the HIGAS LNG storage terminal in Sardinia to three of its existing shareholders - Stolt-Nielsen, Golar LNG and Höegh Evi - subject to the customary approvals and agreements on final legal documentation.
Following this divestment, Avenir said it will operate as a pure play small-scale LNG shipping and trading company, with a commitment to providing efficient and sustainable LNG supply solutions.
The company owns LNG bunkering vessels and said it saw an opportunity to capitalise on robust market drivers.
These include favourable regulatory developments, constrained supply, and a substantial increase in the LNG-fuelled fleet, all of which are expected to significantly boost marine LNG demand beyond 15 mill tonnes annually over the next five years.
In connection with the listing on Euronext Growth Oslo, Avenir planned to raise about $50 mill in new equity, fully underwritten by Stolt-Nielsen, to finance two newbuilding 20,000 cu m LNG bunker & supply vessels, originally announced in April, 2024.
The company also said that it was also considering increasing the equity to support further fleet expansion, as the company had secured options for two additional newbuildings at attractive terms.
The Euronext Growth Oslo listing and new equity raise was intended to expand the shareholder base and increase the free float of its shares.
Avenir’s indirect equity interests in the HIGAS LNG storage terminal will be transferred to a newly incorporated vehicle owned by the majority shareholders.
Consideration will come in the form of a settlement of an existing shareholder loan and transfer of a portion of the Avenir shares held by these shareholders back to Avenir.
This transaction will be structured such that Avenir’s NAV per share both, prior to, and after the divestment will remain at around $1.10 per share, as valued by independent brokers.
Upon its completion, an opportunity for other Avenir shareholders to acquire interests in the terminal will be considered on mainly the same economic terms.
Avenir LNG’s Managing Director, Jonathan Quinn, commented: "We are very pleased to announce this next chapter in Avenir’s history aimed at accelerating the company’s growth ambitions.
“With the LNG fuelled fleet set to grow from around 400 vessels in 2023 to over 1,000 vessels by 2028, demand for bunker vessels is set for strong growth over the next decade.
“This is a timely opportunity to refocus and consolidate the company’s strategy into shipping and trading by divesting from HIGAS.
“This transaction will enhance our position as a leading pure play owner of LNG bunker vessels and improve operational efficiency, paving the way for a more streamlined and competitive company which has a strategy to leverage favourable market conditions by growing our fleet, ” he said.
Avenir has engaged Clarksons Securities and DNB Markets, a part of DNB Bank, as financial advisors for the listing process. The company is currently registered on Euronext NOTC, a market place for unlisted shares.
Currently, Avenir owns and operates a fleet of five modern LNG bunker and supply vessels with two more vessels under construction.
