- Perth company, Liquefied Natural Gas (LNG) has lost its lender, First Wall Street Capital, for the LNG9 takeover
- Earlier this month, the company received a takeover bid from Singapore company, LNG9, for nearly $115 million
- First Wall was to provide financing to meet working capital requirements and transaction costs
- LNG9 has now informed the company that it wants to work together to arrange new sources of funding
- The Singaporean company has also informed LNG the bidder’s statement is to be lodged with the Australian Securities and Investment Commission by mid-April
- LNG’s Board of Directors will be supporting the offer and recommend shareholders to accept this offer as well
- LNG is down 15.2 per cent on the market today, trading at 8.4¢ apiece
Perth company, Liquefied Natural Gas (LNG) has updated the market on the LNG9 takeover offer.
Earlier this month, the company received a takeover bid from Singapore company, LNG9 for $114.9 million.
Today, LNG9 has informed LNG that the bidder’s statement is to be lodged with the Australian Securities and Investment Commission by mid-April. This is a delay from the previously announced timeline. The company says this is due to the global impact of COVID-19.
LNG will issue its target’s statements no later than 15 days after the bidder’s statement is received to shareholders.
LNG’s Board of Directors say they will be supporting the offer and recommending shareholders to accept this offer as well.
First Wall Street Capital agreed to be the lender for LNG, agreeing to provide bridge financing in order to meet working capital requirements and transaction costs.
However, First Wall has now told LNG it will not provide the funds.
“LNG has therefore terminated the deed and the security provided under that deed and reserves all of its rights against First Wall Street Capital Corp,” the company told the market.
LNG9 has informed LNG that it intends to work with the company to provide or arrange new sources of funding for the offer to go ahead.
The earliest completion date of the offer is May 28 2020.
LNG is down 15.2 per cent on the market today, trading at 8.4¢ apiece at 12:54 pm AEDT.