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    Oz LNG Limited Loses White Knight

Summary

Other talks underway to sustain operations

by: Dale Lunan

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Oz LNG Limited Loses White Knight

Singapore’s LNG-9 has withdrawn its US$75mn offer to acquire LNG Limited (LNGL), the Australian company said April 14.

LNGL’s inability to secure bridge financing from First Wall Street Capital Corp, LNG-9 said, was “reasonably likely to have a material adverse effect on LNGL” and that certain conditions of its proposed takeover bid “have been triggered or are incapable of being satisfied.”

In a statement, LNGL said it understands that LNG-9 remains interested in acquiring all or a material part of its assets, and the two companies will continue to work together to find a mutually acceptable transaction structure.

In addition to the ongoing discussions with LNG-9, LNGL said it is also working with other parties on strategic alternatives to supplement existing cash on hand that would improve its working capital position and sustain its operations. Its US subsidiary has already received a paycheck protection program loan of US$388,552 from the US Small Business Administration.

“LNGL’s existing cash reserves are sufficient to meet all of the company’s commitments until May 2020, and LNGL must secure additional meaningful funding urgently to continue operating beyond then,” the company’s statement said.

LNGL is developing the 8mn mt/yr Magnolia LNG export terminal in Louisiana and the 8-12mn mt/yr Bear Head LNG terminal in the eastern Canadian province of Nova Scotia, as well as the 62.5-km Bear Paw pipeline to connect gas supply to Bear Head.