LNG innovator Crown LNG eyes public listing via $600m merger with Catcha Investment
Crown LNG Holdings AS, a specialist in LNG terminal technologies for challenging weather conditions, and Catcha Investment Corp, a special purpose acquisition company (SPAC) publicly traded under the NYSE ticker ‘CHAA’, have unveiled a definite agreement for a business combination that would result in Crown LNG becoming a U.S. publicly listed company. The consolidated firm, Crown LNG Holdings Limited, aims to list its shares on the New York Stock Exchange under the new ticker symbol “CGBS”.
New Era for LNG Market as Crown LNG Sets Sail for Public Listing
In a deal based on a pre-money valuation of Crown LNG at approximately $600 million, Catcha Investment is merging with the LNG innovator through a new public company (PubCo). This deal is expected to yield a capital infusion of $50 million, earmarked for the Kakinada and Grangemouth projects’ final investment decision (FID). The resulting pro forma enterprise valuation of PubCo is anticipated to hover around $685 million.
**H2 Headline: Crown LNG Shareholders Back the Merger with Massive Support**
Crown LNG is slated to prompt all its shareholders to roll their interest into PubCo, with nearly 90% of Crown LNG’s equity holders before closing already agreeing to this arrangement. This decision, manifesting confidence in the transaction and the company’s future prospects, ensures the shareholders’ interests remain intact and paves the way for a smooth transition.
Crown LNG to Maintain its Leadership Post-Merger
On the completion of the transaction, Crown LNG’s existing leadership team will retain their positions and continue their strategic journey. The boards of Catcha Investment and Crown LNG have unanimously approved the transaction, expected to conclude in Q4 2023, subject to typical closing conditions.
Crown LNG’s Vision and Market Strategy
With a mission to secure stable energy supplies in severe weather-prone markets, Crown LNG’s game plan focuses on owning and operating offshore LNG terminals where onshore facilities aren’t feasible or desirable due to extreme weather, safety issues, cost, or environmental impact.
Crown LNG’s Role in Expanding Global LNG Market
Crown LNG is engaged in two crucial segments of the LNG value chain: liquefaction and regasification. The company’s expertise in these areas positions it as a potential enabler of secure, year-round LNG supplies, especially in harsh weather-prone locations.
Crown LNG’s Innovations for Energy Transition and LNG Market Growth
Crown LNG’s bottom-fixed, gravity-based structure (GBS) design aims to assure lower costs and a reduced environmental footprint, in contrast to comparable land-based LNG terminal alternatives. This innovative solution aligns with global efforts to transition to cleaner energy sources and facilitates stable energy supply for growing markets.
Crown LNG’s Global Projects Underway
Currently, Crown LNG is progressing with two major projects towards FID – in Kakinada, India, and Grangemouth, Scotland. Both projects underline Crown LNG’s commitment to providing stable energy supplies and promoting the use of cleaner fuels, particularly in regions susceptible to harsh weather conditions.