Byron Energy's voluntary delisting from ASX

Byron Energy Limited (ASX: $BYE) has formally requested to be removed from the official list of the Australian Securities Exchange (ASX). The delisting is subject to special resolution of shareholders and aims to address the undervaluation of the company's assets and limited trading on the ASX.

Board's rationale for delisting

The Board of Byron Energy Limited has determined that the voluntary delisting from ASX is in the best interests of shareholders due to the significant undervaluation of the company's assets and the limited trading and liquidity of its shares on the ASX. The Board believes that the disparity between the share market capitalisation and the fair value of Byron's assets has hindered the company's ability to attract investments and raise capital on reasonable terms for development and exploration of its assets.

Outlook and consequences of delisting

Byron Energy's decision to delist from ASX aims to address the undervaluation of its assets and limited trading, providing the company with greater flexibility to execute its strategies and pursue value-enhancing opportunities. The Board anticipates cost savings associated with delisting and believes that the company will have better access to potential capital post-delisting. However, there is no guarantee of enhanced access to capital, and shareholders will no longer have the ability to sell their shares and realize their investment via trading on the ASX. The company will remain subject to continuous disclosure and periodic disclosure obligations under the Corporations Act, and shareholders are advised to seek professional advice regarding potential remedies and implications of the delisting.