Triangle Energy (Global) Ltd. plans to spin out its Philippines-based subsidiary Tetragon Energy Pty Ltd. into a separate ASX-listed entity.
Triangle will invest AU$1.5 million of seed capital and distribute Tetragon shares to Triangle shareholders as part of the spin-out.
Following this, Tetragon will undertake an IPO to raise a minimum of AU$4 million at a price of 20 cents per share.
Upon completion of the IPO, Tetragon will apply to the ASX as a standalone company. Tetragon will initially be focused on the advancement and development of the Philippine assets.
The board of Triangle concluded that the spin-out is a better pathway for both companies, as establishing Tetragon as a standalone entity will offer a dedicated management and structure aligned to Tetragon’s specific asset base and development strategy.
It will also allow both Tetragon and Triangle to concentrate capital and operational resources on their specific business activities.
The new entity will also enable clear market valuation for Tetragon’s portfolio.
Triangle Managing Director Conrad Todd said: “The proposed transition will establish Tetragon as a stand-alone, Asian focused entity initially holding three permits in the Philippines with its own capital structure, investor base and dedicated management team, while allowing Triangle’s shareholders to retain direct exposure to the Philippines assets and future growth.
“Tetragon will also seek further Asian oil and gas opportunities.”
The spin-out is subject to approval from Triangle shareholders at the general meeting to be held on April 29. Tetragon is set to apply for ASX admission by mid-June.
