American Electric Technologies, Inc. (AETI) has executed a definitive share exchange agreement with privately-held Stabilis Energy, LLC (Stabilis) and its subsidiaries to create one of the leading public small scale LNG production and distribution companies in North America. The combined business will include Stabilis’ small scale LNG production and distribution businesses as well as AETI’s existing international businesses.
At the closing, Stabilis and its subsidiaries will become wholly-owned subsidiaries of AETI and the existing AETI shareholders will own 11% of the combined company. The former owners of Stabilis will own 89% of the combined company. After closing, James Reddinger, current President and Chief Executive Officer of Stabilis, will serve as President and Chief Executive Officer of the combined company. Casey Crenshaw, the controlling shareholder of Stabilis, will serve as Executive Chairman.
“AETI is pleased to announce this combination with Stabilis,” said Peter Menikoff, Chairman and Chief Executive Officer of AETI. “We believe the transaction will give the company a substantial North American LNG business to complement its international operations. Additionally, we believe the transaction will benefit AETI by increasing the breadth of its operations to more comfortably support its fixed overhead expenses, de-leveraging its balance sheet, and facilitating access to capital.”
“We believe the combination of Stabilis and AETI will create a leading platform for growth and consolidation in the North American small scale LNG industry,” said James Reddinger, President and Chief Executive Officer of Stabilis. “Stabilis plans to continue to invest in the assets and capabilities required to provide our customers with a low cost, reliable, and comprehensive LNG solution across North America.”
Following the closing, the combined company will continue to operate AETI’s existing Brazilian subsidiary and Chinese joint venture. Art Dauber, former Chairman and CEO of AETI, plans to join the Combined Company as President of International Operations and a member of the Board of Directors. Dauber will lead the development of Stabilis LNG operations in South America and China. He will also help deliver AETI’s expertise in power delivery and electrical systems to Stabilis’ power generation projects.
Casey Crenshaw, Executive Chairman of Stabilis, added, “We are pleased to combine our investments in AETI and Stabilis to create a public company growth platform in the small scale LNG industry. We believe that small scale LNG has tremendous growth potential across multiple end markets in North America, and this transaction gives us the opportunity to grow Stabilis’ footprint aggressively in the near future.”
Upon completion of the transaction, the combined company will be renamed ‘Stabilis Energy, Inc.’, and will apply to continue trading on the NASDAQ Stock Market under the symbol SLNG.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18122018/aeti-sign-of-a-definitive-share-exchange-agreement-with-stabilis-energy/