Sunbird Energy (ASX:SNY) should trade higher after signing binding agreements for a transaction to deliver over $25 million at a premium of around 79% on its last traded share price.
The transaction will also secure a major strategic partner in Vandasia Investments to help advance development of its Ibhubesi Gas Project in South Africa.
Vandasia will acquire a 43.9% interest in Sunbird via two capital raisings at the equivalent weighted average price of $0.34 per share, and the acquisition and conversion of 47.75 million existing $0.20 SNY options.
Beyond the confidence expressed by Vandasia in Sunbird's prospects, this transaction delivers the funding required to advance the Ibhubesi Gas Project to commercialisation and provides a strategic shareholder with extensive industry experience in Africa.
Vandasia is a specialist investment company with a focus on developing gas resources in continental Africa, structured to make investments in upstream gas assets, LNG solutions and related infrastructure, as well as gas-to-power projects.
This is a significant transaction, particularly considering Sunbird's market cap of only $22 million.
