9th Dec 2015 08:13
LONDON (Alliance News) - Riverstone Energy Ltd Wednesday announced the results of its placing and open offer launched last month that will facilitate the company's plans to significantly increase its stake in one of its portfolio companies.
Riverstone launched a placing and open offer last month with the aim of raising GBP67.6 million through over 8.4 million new shares at a price of 800.0 pence each.
On Wednesday, the company said it received acceptances under the open offer for 4.8 million new shares, which represented 57% of the shares available under the open offer. A further 3.6 million new shares were also issued under the placing - meaning Riverstone has raised its target amount.
Overall, Riverstone said the number of shares applied for under the open offer, placing and excess application facility exceeded the number of shares available, meaning it some applications were scaled back.
Following the fundraising, Riverstone Energy's share capital will rise to under 84.5 million shares from just over 76.0 million shares.
Through the open offer, cornerstone investor AKRC Investments LLC took up over 2.2 million new shares in Riverstone to maintain its stake, but also purchased a further 1.1 million new shares through the excess application facility to up its stake to 27.5% from 26.15%.
Of the GBP67.6 million raised, Riverstone plans to use up to GBP67.0 million to increase its stake in one of its existing portfolio companies, Canadian International Oil Corp, pursuant to a tender offer for outstanding shares and warrants of CIOC.
That investment in CIOC is expected to be completed on December 29.
Riverstone Energy shares were untraded at 782.0 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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