Avenir LNG Limited has announced a strategic refocus of its business and is exploring a potential listing on Euronext Growth Oslo, alongside raising new capital. As part of this shift, Avenir plans to divest its ownership of the HIGAS LNG storage terminal in Sardinia to three of its major shareholders: Stolt-Nielsen, Golar LNG, and Höegh Evi. The divestment is subject to approvals and final legal documentation. Post-divestment, Avenir will operate as a small-scale LNG shipping and trading company, focusing on providing efficient and sustainable LNG supply solutions.
Positioned as a leading provider of LNG bunkering vessels, Avenir is set to capitalise on favourable market conditions, such as regulatory developments, limited supply, and the growth of the LNG-fuelled fleet, which is expected to boost marine LNG demand beyond 15 million tonnes annually over the next five years.
As part of its long-term growth strategy, Avenir has initiated the process of seeking a listing on Euronext Growth Oslo later this year. The company aims to raise approximately USD 50 million in new equity, underwritten by Stolt-Nielsen, to finance two newbuild 20,000 cbm LNG bunker and supply vessels announced in April 2024. The equity raise may also increase to support further fleet expansion, with the company holding options for two additional newbuilds on favourable terms. The planned listing and equity raise are intended to expand Avenir’s shareholder base and increase the free float of its shares.
The divestment will be carried out through a restructuring, transferring indirect equity interests in the HIGAS terminal to a new vehicle owned by the majority shareholders. Consideration for the divestment will include settling an existing shareholder loan and transferring a portion of Avenir shares back to the company. The transaction is structured to ensure Avenir’s net asset value per share remains at approximately USD 1.10, both before and after the divestment. There may also be an opportunity for other Avenir shareholders to acquire interests in the HIGAS terminal on similar terms.
Jonathan Quinn, managing director of Avenir LNG, commented: “This next chapter in Avenir’s history accelerates the Company’s growth ambitions. With the LNG-fuelled fleet expected to grow significantly, this is a timely opportunity to refocus our strategy on shipping and trading by divesting from HIGAS. This transaction will enhance our position as a leading LNG bunker vessel owner and improve operational efficiency, positioning us to leverage favourable market conditions by expanding our fleet.”
Avenir has engaged Clarksons Securities AS and DNB Markets as financial advisors for the listing process. The company is currently registered on Euronext NOTC, a marketplace for unlisted shares
For more information visit www.avenirlng.com
