Join our daily newsletter At The Bell to receive exclusive market insights
- Sundance Energy Australia wants to move from Australia to the United States under a proposed Scheme of Arrangement
- If the move is approved, it will transfer its primary listing to Nasdaq and will cease to trade on the ASX
- Sundance shareholders will receive one share in Holdco for every 100 Sundance shares
- The Board unanimously recommends that shareholders vote in favour of the scheme
Sundance Energy Australia wants to move from Australia to the United States under a proposed Scheme of Arrangement with Holdco.
Headquartered in Denver, Colorado, Sundance Energy is an oil and gas producer with extensive experience. The company has a strong asset base in the core of the Eagle Ford, in Texas.
Under the agreement, Holdco, a newly-formed U.S. corporation will become the parent company of Sundance Energy.
If the scheme is approved, the company will transfer its primary listing to Nasdaq and will cease to trade on the ASX.
Sundance’s Board of Directors have unanimously recommended that shareholders vote in favour of the scheme.
Sundance shareholders will receive one share in Holdco for every 100 Sundance shares.
The Board believes this scheme will benefit Sundance shareholders by attracting and increasing awareness of Holdco with a broader U.S. investor pool and access to lower-cost debt or equity capital in the U.S. market.
The move will also create a simpler structure for future potential merger, sale or acquisition transactions, which the company believes will increase Holdco’s appeal.
It has appointed an Independent Expert to determine whether the scheme is in the best interests of Sundance Shareholders, which will be given to the shareholders by early October.
“The Directors of Sundance unanimously recommend that Sundance shareholders vote in favour of the Scheme and all of the Directors personally intend to vote all Sundance shares in their control in favour of the Scheme,” the company added.
For the move to take place, it will need shareholder and Federal Court of Australia approval.
The voting for the proposed move will be held in November 2019.
