Linc Energy boss Peter Bond says mid-sized firms are finding it impossible to take the next step on Australia’s share market, and that is why he is ditching it for Singapore.
The oil, gas and coal company will need 51 per cent support from shareholders to de-list from the ASX and move to Singapore’s SGX in December.
Mr Bond, one of Australia’s richest men with wealth of about $450 million, will vote with his 39 per cent stake, meaning just 12 per cent of the remaining votes will be needed to back the move.
He says he is frustrated with a lack of support from Australian institutional investors, including superannuation funds, which has caused Linc to be undervalued.
The company’s current listed value is less than $730 million.
Large investors tend to only back the 50 or 60 largest ASX stocks, he said, and other chief executives are equally frustrated and want to relocate their share listings.
“A country as rich as we are, the fourth to fifth largest saving nation in the world, we have literally a trillion dollars sitting in banks … but the stocks outside the top 50 to 60 aren’t getting the full benefit of superannuation in general and funds under management,” Mr Bond said.
“I’d like to see more of that superannuation money in general funds management start to focus on our own backyard.”
The value of Singapore’s stock exchange is smaller than Australia’s, but would unlock Linc’s value as it would be a big player in a market with less exposure to energy companies, he said.
Brisbane-based Linc’s assets include oil and gas production assets in the US, shale in South Australia and underground coal gasification technology, in which Russian billionaire Roman Abramovich has invested in.
“(Singapore) is becoming the energy hub of Asia in the Asian century, where it is the highest growth market for energy demand consumption for foreseeable generations,” Mr Bond said.
Linc’s shares dropped 14.75 cents, or 10.5 per cent, to $1.258 on Wednesday, before they were placed in a trading halt pending an announcement by the company of a purchase of Queensland coal mining assets.
Linc Energy dumps ASX for Singapore
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