GLNG - Golar LNG - No-Go For Hygo After CEO Linked To Brazil's Car Wash Scandal

• Shares sell off after eagerly anticipated IPO of the company's Hygo Energy Transition subsidiary has been suspended due to the CEO's alleged involvement in the Car Wash Scandal.
• Hygo has initiated a review "to confirm that there have not been any deviations from its culture of compliance"
• With its CEO now firmly linked to the Car Wash Scandal and Hygo relying on contracts with government-backed entities, uncertainty about the company's business prospects has increased.
• Hygo is facing a June 2021 IPO deadline. A failure to complete a listing could result in the requirement to convert and subsequently redeem an estimated $166.7 million in preference shares held by partner Stonepeak.
• Both Golar LNG and Hygo need the IPO badly to deal with their respective liquidity issues. Particularly Golar LNG grapples with near-term debt maturities. Only the most speculative investors should consider taking a position in the company's common shares at this point.

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