- Liquified Natural Gas (LNG) has entered a binding sales transaction with Global Energy Megatrend (GEM) for the Magnolia LNG project
- LNG went into administration on April 30, with Price Waterhouse Coopers appointed to review the business and its assets, leading to the Magnolia sale
- Under the terms of the transaction, GEM, or a subsidiary, will acquire the project for a consideration of US$2.25 million
- As part of the transaction, LNG will also sell-on its patented optimised single mixed refrigerant (OSMR) liquefaction process technology, though it will retain perpetual usage rights at the Bear Head LNG project
- The deal is expected to be completed on Friday, May 15
- Liquefied Natural Gas has been in a trading halt since April 30, with shares locked at 4.3 cents each
Liquified Natural Gas (LNG) has entered into a binding sales transaction with Global Energy Megatrend (GEM) for the Magnolia LNG project.
The deal
Under the terms of the transaction, GEM, or a subsidiary, will acquire the project for a consideration of US$2.25 million.
In disposing of the project, LNG will also pass on hanging liabilities, including those associated with 16 employees, associated with the project to the buyer.
As part of the transaction, LNG will also sell-on its patented optimised single mixed refrigerant (OSMR) liquefaction process technology, though it will retain perpetual usage rights at the Bear Head LNG project.
The deal is expected to be completed on Friday May 15.
Where to next?
While LNG and its subsidiaries have retained the Bear Head project, the sale of Magnolia and the OSMR tech represents a large part of the company’s assets.
LNG went into administration on April 30, with Price Waterhouse Coopers appointed to review the business and its assets, leading to the Magnolia sale.
LNG shares have gone from a high of $4.90 in May 2015 to just 4.3 cents now, losing 99 per cent of their value.
Today’s announcement of the bargain sale of Magnolia and OSMR looks like another coffin nail.
Liquefied Natural Gas has been in a trading halt since April 30, with shares locked at 4.3 cents each.