NextDecade To Go Public, Post-Merger

NextDecade, the privately-held US developer of liquefaction projects in Texas led by Kathleen Eisbrenner, has said it will become a publicly listed company as a result of a merger with US investment fund Harmony Merger Corporation.

The two companies announced April 18 they have signed a definitive agreement to merge. Harmony currently has some $112.8mn of cash in trust.  Assuming no redemptions by Harmony stockholders, the all-stock transaction is expected to yield a combined entity with an enterprise value of over $1bn at closing, said NextDecade, with up to an additional $200mn contingent stock consideration to be paid to NextDecade’s members upon the achievement of certain milestones. Harmony stockholders would own 13% of the resultant company. The merger is expected to be close late 2Q2017.

Harmony's website had explained its rationale: "We are a blank check company, often referred to as a special purpose acquisition company, looking to merge with a private company with a value of $250mn to $1bn or more." Its cash balance was raised as a result of an initial public offering.

NextDecade CEO Kathleen Eisbrenner (Photo credit: the company)

Tellurian, a similar developer of US liquefaction projects, in December 2016 recruited Total as a 23% shareholder in return for which the French company paid $207mn into the business.

Mark Smedley