Dual-listed coal seam gas explorer L&M Energy, formerly L&M Petroleum, starts an eight-date roadshow for shareholders in Dunedin on Tuesday on its merger proposal with private sister company Coal Seam Gas.
Subject to shareholder approval in March, the New Zealand Takeovers Panel earlier this month granted an exemption for the merger which will result in L&M Energy's three largest stakeholders almost doubling their stake to 83.8% of the merged companies.
The post-merger assets of L&M Energy, which is targeting coal seam gas (methane) and petroleum exploration, would include 12 exploration permits across New Zealand.
The merged company would have a market capitalisation of more than $100 million.
L&M Energy, with shareholder approval, would eventually hold an estimated 173 petajoules of energy in coal seam gas.
It can be used for electricity generation, industrial energy use or as a transport fuel and any other conventional natural gas application.
