Triangle to float subsidiary on ASX

Gas explorer Triangle Energy Global has announced plans to spin-out one of its subsidiaries into a new entity and float it on the ASX.

Perth-based Triangle will spin-out its wholly-owned subsidiary State Gas into a separate company and undertake a $5.3 million initial public offering.

The IPO will be priced at 20 cents a share.

State Gas will list with an expected market capitalisation of $27 million, as well as a 60 per cent stake in its Reids Dome gas project in the Bowen Basin.

Triangle will retain a 35.4 per cent stake in State Gas, with managing director Robert Towner to be Triangle’s representative on the State Gas board.

“The spin-out of Reids Dome has been carefully planned to ensure the asset is in the hands of a team focused exclusively on its development,” Mr Towner said.

“Triangle shareholders will benefit from the success of State Gas through the meaningful equity stake that we continue to hold.

“The supply constraints in the east coast gas market presented an ideal time for Triangle to move on this opportunity.”

Shares in Triangle were 23.8 per cent higher to 13 cents each at 10:30am.