Crown LNG, a provider of offshore liquefied natural gas (LNG) terminal infrastructure solutions for harsh weather locations, has agreed to a merger with Catcha Investment in a deal that makes the pro forma implied enterprise value of the combined company $685m (€626.03m).
Catcha Investment is a special purpose acquisition company.
Currently, Crown is developing two infrastructure projects in Kakinada, India, and Grangemouth, Scotland.
The Kakinada project, which uses gravity-based structure, supports the Indian Government’s aim to increase natural gas in its energy mix to 15% by 2030 from 7% currently.
Crown said that the Kakinada project’s preliminary front-end engineering and design studies have been completed.
Located on the east coast of Scotland, the Grangemouth project is expected to address the country’s growing drive for energy security due to the impact of Russia-Ukraine conflict on energy markets.
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The deal is expected to provide $50m of capital, with the net proceeds used to fund the two projects in India and Scotland to final investment decision.
Crown CEO Swapan Kataria said: “This business combination with Catcha is a transformative step for accelerating Crown’s growth, with the aim to provide its investors with a stable, long-term return on their investment.
“The capital raised in this transaction will further strengthen our ability to execute on our diversified project pipeline in India, the UK, Vietnam, Canada and other global markets.”
The combined company, which will be named Crown LNG Holdings Limited, is due to be listed on the New York Stock Exchange.
Subject to customary closing conditions, the transaction is scheduled for completion during the fourth quarter of 2023.