Canada’s Pieridae Energy says looking at “strategic alternatives”

Canada’s Pieridae Energy, the developer of the Goldboro LNG export terminal, said it has launched a formal process to identify, examine and consider a range of “strategic alternatives.”

Pieridae said in a statement such strategic alternatives may include a corporate sale, merger, a sale of a material portion of Pieridae’s assets or other transactions.

The move comes just weeks after Pieridae failed to make a final investment decision on the company’s $10 billion LNG export development in Nova Scotia.

The company’s board of directors has authorized the creation of a special committee, chaired by board member Andrew Judson, that would review and evaluate potential strategic alternatives as well as transactions, the firm said.

“Ensuring shareholder value”

“We are taking this step with the focus of ensuring shareholder value is maximized,” Pieridae chief executive Alfred Sorensen, said.

Also, he said shareholders and the company have invested “heavily” in the Goldboro LNG project for a number of years and the firm has acquired and consolidated a large base of Foothills upstream assets.

Sorensen said “it is prudent for us” to look for ways to ensure the firm finds an appropriate return for these investments.

Moreover, Pieridae has not set a definitive schedule to complete its identification, examination and consideration of strategic alternatives.

“It is the company’s current intention not to disclose developments with respect to the process unless and until its board of directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate,” the firm said.

“We caution that there are no assurances or guarantees that the process will result in a transaction,” Pieridae said.

Interim finance chief

In addition, the company has also appointed Adam Gray as interim chief financial officer following the resignation of Rob Dargewitcz.

Gray joined Pieridae in January 2020, acting as vice president and controller.

He brings nearly 15 years of experience to the role, including five years with PwC, Pieridae said.

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