Avenir LNG Limited announces a strategic refocus of its business and explores raising capital along with a potential listing on the Euronext Growth Oslo. The Company is proposing to divest its ownership of the HIGAS LNG storage terminal in Sardinia to three of its existing shareholders: Stolt-Nielsen, Golar LNG and Höegh Evi (the “Majority Shareholders”), subject to customary approvals and agreement on final legal documentation (the “Divestment”). Following the Divestment, Avenir will operate as a pure play small-scale LNG shipping and trading company, with a commitment to providing efficient and sustainable LNG supply solutions.
As a leading provider of LNG bunkering vessels, Avenir is poised 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 million tons annually over the next 5 years.
As part of Avenir’s long-term growth strategy, the Company has also begun the process of seeking a listing on Euronext Growth Oslo later this year. In connection with the listing, the Company plans to raise approximately USD 50 million in new equity, fully underwritten by Stolt-Nielsen, to finance two newbuild 20,000cbm LNG bunker & supply vessels announced in April 2024. Additionally, Avenir is also considering increasing the equity raise to support further fleet expansion. The Company has secured options for two additional newbuilds at attractive terms. It is the intention that the Euronext Growth Oslo listing and new equity raise will expand the shareholder base and increase the free float of Avenir’s shares.
The Divestment is proposed to be implemented prior to any listing via a restructuring of Avenir. The indirect equity interests in the HIGAS LNG storage terminal will be transferred to a newly incorporated vehicle owned by the Majority Shareholders. Consideration for the Divestment will be in the form of a settlement of an existing shareholder loan and transfer of a portion of the Avenir shares held by the Majority Shareholders back to Avenir. The transaction is intended to be structured such that Avenir’s NAV per share both, prior to, and after the Divestment will remain at approximately USD 1.10 per share as valued by independent brokers. Upon completion of the Divestment, an opportunity for other Avenir shareholders to acquire interests in the HIGAS LNG storage terminal will be considered on substantially the same economic terms.
Jonathan Quinn, Managing Director, Avenir LNG 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 ~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.”
The Company has engaged Clarksons Securities AS and DNB Markets, a part of DNB Bank ASA, as financial advisors for the listing process. Avenir is currently registered on Euronext NOTC, a marketplace for unlisted shares.
Source: Avenir LNG Limited