Canadians can up stake in Australian Renewable Fuels

25/01/2013

Energy Business News

Canadian biorefining company Lignol Energy has received regulatory approval to lift its stake in listed biodiesel producer Australian Renewable Fuels beyond the 15 per cent foreign ownership threshold.

The Foreign Investment Review Board has greenlit Lignol to increase its stake in ARF, despite the company saying it was not yet committed to further investment. Lignol said it studying options for co-operation between it Canadian operations and ARF in Australia.

Ross MacLachlan, Lignol chief executive, said the study could “lead either to an increase in the size of the investment, further complementary investments or business transactions or, under certain conditions, liquidating our investment.”

Lignol lifted its stake in ARF to 14.9 percent in November, but since then ARF has announced a A$14 million capital raising which would dilute the Lignol stake to around 10 percent. Lignol purchased its stake from former ARF shareholder Wasabi Energy.