Energy World Proposes $440M Debt-to-Equity Swap Amid Leadership Shakeup
Energy World Corporation Ltd plans to convert $440.5 million of debt into shares at a significant premium, reshaping its capital structure and boosting major shareholders’ stakes. Concurrently, the company announces key leadership changes to steer its next growth phase.
- Proposed conversion of US$440.5 million debt into approx. 782 million shares at A$0.88 each
- Major shareholders’ combined stake to rise from 41% to about 53%
- Brian Allen resigns as Managing Director and Chair after 24 years
- Alan Jowell appointed interim Chair; Edward McCartin named new CEO
- Transaction aims to strengthen balance sheet and improve financial stability
Significant Capital Restructuring
Energy World Corporation Ltd (EWC) has unveiled a transformative proposal to convert approximately US$440.5 million of outstanding debt into equity, subject to shareholder approval. The conversion price of A$0.88 per share represents a striking premium, about 44 times the recent average share price, resulting in the issuance of roughly 782 million new shares. This move would dilute existing shareholders but significantly reduce the company’s debt burden, positioning EWC for improved financial stability and future growth.
The debt conversion would increase the combined shareholding of Energy World International Ltd (EWI) and Slipform Engineering Group from 41% to approximately 53%, effectively consolidating their control. The company’s net asset value per share is projected to be around A$0.31 post-transaction, underscoring the premium at which shares are being issued.
Leadership Transition Marks New Era
Coinciding with the capital restructure, EWC announced the resignation of Brian Allen, who has served as Managing Director and Chair for 24 years. His departure marks the end of a significant chapter for the company. Alan Jowell has been appointed interim Chair, while Edward McCartin steps in as CEO effective 1 July 2025.
McCartin brings extensive experience in LNG and power sectors, particularly in Southeast Asia, with a 25-year track record spanning project financing, construction, and operations across multiple countries including the Philippines and Indonesia, key markets for EWC. His appointment signals a strategic focus on commercialising existing projects and securing new funding.
Strategic Rationale and Market Implications
The proposed debt-to-equity swap addresses a longstanding challenge for EWC, a heavy debt load that has weighed on its share price and investor confidence. By eliminating immediate debt repayment obligations, the company expects to free up cash flow to advance its power and LNG projects. The transaction also reflects strong ongoing support from major shareholders, who have historically provided capital on favourable terms.
Independent expert analysis is underway to assess the fairness of the deal to minority shareholders, with a general meeting scheduled to seek their approval. The company is concurrently finalising technical and commercial reviews of its projects, which will inform investor marketing efforts led by a US investment bank.
While the share issuance will dilute existing holdings, the board believes the strengthened balance sheet and refreshed leadership team will enhance EWC’s attractiveness to future investors and underpin long-term strategic objectives.
Bottom Line?
Energy World’s bold debt conversion and leadership overhaul set the stage for a critical inflection point in its growth journey.
Questions in the middle?
- Will shareholders approve the significant dilution implied by the debt-to-equity conversion?
- How will the new CEO’s strategy accelerate project commercialisation and funding?
- What updated capital cost estimates and project timelines will emerge from ongoing reviews?