Gulf Canada files for Indonesia IPO unit<\/p>\n
CALGARY (Reuter): Gulf Canada Resources Ltd said yesterday it
\nfiled for a much-anticipated initial public offering of its Gulf
\nIndonesia Resources unit, operator of the company's extensive
\nIndonesia oil and gas operations.<\/p>\n
Gulf said in its statement to the U.S. Securities and Exchange
\nCommission it planned to issue 21 million common shares, of which
\n14.2 million would be offered by Gulf Indonesia and 6.8 by parent
\nfirm Gulf Canada.<\/p>\n
Underwriters would also have the option of acquiring an
\nadditional 3.15 million shares owned by Gulf Canada to cover
\nover-allotments, the company said.<\/p>\n
Gulf said the shares would be priced between US$17 and US$23,
\nbut a final decision on price would not be made until the end of
\nSeptember.<\/p>\n
Including over-allotments, the issue would be valued as high
\nas US$555 million and as low as US$411 million.<\/p>\n
Gulf Chief Executive J.P. Bryan first announced his intention
\nto float part of Gulf Indonesia, formerly Asamera, during his bid
\nfor U.K. oil firm Clyde Petroleum late last year.<\/p>\n
After the issue, to initially be floated on the New York Stock
\nExchange under the symbol GRL, Gulf Canada will own 66.5 million,
\nor 76 percent, of the unit's 87.5 million outstanding shares if
\nover-allotments are not exercised, it said.<\/p>\n
Gulf also said it would seek a listing for the shares on the
\nJakarta Stock Exchange.<\/p>\n
A portion of the offering's net proceeds to Gulf Indonesia
\nwill be used to repay debt to its parent firm of about US$100 and
\npay a US$68 million special dividend to Gulf Canada, the company
\nsaid.<\/p>\n
The rest would be used to partly fund Gulf Indonesia's capital
\nspending.<\/p>\n
Meanwhile, net proceeds to Gulf Canada for the sale of its
\nGulf Indonesia shares, the loan repayment from the Indonesia unit
\nand the special dividend would be used to pay down own sizable
\ndebt, it said.<\/p>\n
Gulf said the transaction would include an offering in the
\nUnited States managed by Goldman, Sachs & Co, Morgan Stanley Dean
\nWitter and Salomon Brothers Inc, as well as an international
\noffering managed by Goldman, Sachs (Asia) LLC, Morgan Stanley
\nDean Witter, ING Barings and Jardine Fleming.<\/p>\n
Earlier on Thursday, Gulf announced that won 90 percent of the
\nshares of Stampeder Exploration Ltd in its friendly C$1-billion
\noffer for the Canadian oil producer.<\/p>\n
Gulf shares in Toronto closed up 0.35 to 11.35, on volume of
\nnearly 2.4 million shares.<\/p>",
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