Australian company Liquefied Natural Gas Limited, developer of the US Magnolia LNG project in Louisiana and the Canadian Bear Head venture in Nova Scotia, has decided at a board meeting to re-domicile to the United States and list on the Nasdaq global exchange.
LNG Ltd said that after the vote by the board the company currently listed on the Australian Securities Exchange would proceed to list on the Nasdaq following regulatory and judicial approvals and an affirmative shareholder vote.
“After continued evaluation by the Board and management team and given the Company’s confidence in raising new capital to fund our business and marketing efforts, we believe a US re-domiciling is in the company’s best interest,” said Paul J. Cavicchi, Chairman.
The Magnolia and Bear Head projects have plans for combined production plans of up to 20 million tonnes per annum, 8 MTPA at Magnolia at Lake Charles and as much as 12 MTPA at Bear Head, proposed for Richmond County in Nova Scotia.
“This listing change is expected to benefit LNGL and its shareholders by properly positioning and valuing the Company for future success,” added Cavicchi.
LNG Ltd, based in Sydney, said it believed the US listing change would increase awareness of the stock among North American investors who are familiar with the LNG industry and have significant capital to deploy to such assets.
The company also expected better valuation and better trading liquidity for the stock, given the current valuations for LNG Ltd’s US-listed peers.
LNG Ltd. additionally forecasts that the change would make the company more attractive to potential future business partners.
The company's assets include the OSMR LNG liquefaction process through its subsidiary LNG Technology Pty Ltd.
“LNGL is committed to transparency and regular communication during the re-domicile process,” said Chief Executive Greg Vesey.
“This will ensure that all shareholders, retail and institutional, Australian, or in the US and elsewhere, are able to make fully informed decisions,” added the CEO.
“At this stage we anticipate that a re-domicile transaction could be completed in late 2019 or early 2020,” stated Vesey.
The re-domiciliation process will utilize a Scheme of Arrangement under the Australian Corporations Act pursuant to which LNG Ltd’s shareholders will exchange their stock for shares in a newly incorporated US company based in the state of Delaware.
“To assist with the transition, the company anticipates using a share sale facility, providing eligible existing shareholders an election to either sell or retain their shareholding in accordance with the Scheme of Arrangement,” said LNG Ltd.