Energy World Corporation (ASX: EWC), an LNG developer, has entered a subscription agreement with major shareholders Energy World International (EWI) and the Slipform Engineering Group to refinance existing debts. Energy World Corporation focuses on developing and operating power generation and LNG infrastructure projects. The company aims to provide clean energy solutions in the Asia-Pacific region.
The agreement involves converting approximately $659 million, plus all accrued interest, into fully paid ordinary shares in EWC. This move will enable the company to clear its debt with lenders and support the development of its power and LNG assets in the Philippines. Conversion shares will be issued at A$0.88 each, about 44 times the company’s 30-day volume-weighted average price (VWAP) of A$0.02.
Upon completion, the estimated conversion will result in approximately 782 million new shares, representing about 25% of the current shares on issue. Consequently, the combined shareholding of EWI and Slipform would increase from 41% to around 53%. Shareholders will vote on the proposed transaction at an upcoming general meeting.
EWC is also undergoing changes in its leadership. Brian Allen is stepping down as managing director and chair after 24 years, with Alan Jowell named interim chair and Edward McCartin appointed as chief executive officer. The company anticipates the debt reduction will significantly improve its financial structure, enhance cash flow, and strengthen its balance sheet.
