Gulf Canada files for Indonesia IPO unit

Gulf Canada files for Indonesia IPO unit

CALGARY (Reuter): Gulf Canada Resources Ltd said yesterday it filed for a much-anticipated initial public offering of its Gulf Indonesia Resources unit, operator of the company's extensive Indonesia oil and gas operations.

Gulf said in its statement to the U.S. Securities and Exchange Commission it planned to issue 21 million common shares, of which 14.2 million would be offered by Gulf Indonesia and 6.8 by parent firm Gulf Canada.

Underwriters would also have the option of acquiring an additional 3.15 million shares owned by Gulf Canada to cover over-allotments, the company said.

Gulf said the shares would be priced between US$17 and US$23, but a final decision on price would not be made until the end of September.

Including over-allotments, the issue would be valued as high as US$555 million and as low as US$411 million.

Gulf Chief Executive J.P. Bryan first announced his intention to float part of Gulf Indonesia, formerly Asamera, during his bid for U.K. oil firm Clyde Petroleum late last year.

After the issue, to initially be floated on the New York Stock Exchange under the symbol GRL, Gulf Canada will own 66.5 million, or 76 percent, of the unit's 87.5 million outstanding shares if over-allotments are not exercised, it said.

Gulf also said it would seek a listing for the shares on the Jakarta Stock Exchange.

A portion of the offering's net proceeds to Gulf Indonesia will be used to repay debt to its parent firm of about US$100 and pay a US$68 million special dividend to Gulf Canada, the company said.

The rest would be used to partly fund Gulf Indonesia's capital spending.

Meanwhile, net proceeds to Gulf Canada for the sale of its Gulf Indonesia shares, the loan repayment from the Indonesia unit and the special dividend would be used to pay down own sizable debt, it said.

Gulf said the transaction would include an offering in the United States managed by Goldman, Sachs & Co, Morgan Stanley Dean Witter and Salomon Brothers Inc, as well as an international offering managed by Goldman, Sachs (Asia) LLC, Morgan Stanley Dean Witter, ING Barings and Jardine Fleming.

Earlier on Thursday, Gulf announced that won 90 percent of the shares of Stampeder Exploration Ltd in its friendly C$1-billion offer for the Canadian oil producer.

Gulf shares in Toronto closed up 0.35 to 11.35, on volume of nearly 2.4 million shares.