Baker & McKenzie has advised Lonestar Resources Limited, an ASX-listed Australian corporation with oil & gas operations in Texas, on its re-domiciliation to Delaware with a listing on the NASDAQ Global Market (“NASDAQ”).
A change in domicile better aligns with the company's assets and operational management in the United States and a listing on NASDAQ can result in improved valuation, better trading liquidity and lower share price volatility. In fact, its share price has been trading significantly higher since the first full day of trading on NASDAQ in early July.
Sydney-based US Corporate Partner Andrew Reilly led the transaction with support from Guy Sanderson, Anna Kramer, Jeanie Chang, John Walker, Jun Au, Maria O'Brien and Heather Sandell in Sydney, Heath Trisdale in Houston as well as John McDonald and Meaghan Wolfe in Chicago.
Speaking about the transaction, Mr Reilly commented,
This transaction demonstrates our one-stop shop capability to support our clients. We were able to provide the necessary US and Australian law advice to our client to complete the re-domiciliation through Australian schemes of arrangement with a concurrent listing of the new Delaware parent company on NASDAQ, which involved registration with the US Securities Exchange Commission, in an effective and seamless manner.
This is one of a number of transactions into the United States that we have advised on where Australian companies have sought higher valuations and access to larger pools of capital.