23rd Nov 2015 16:30
LONDON (Alliance News) - Riverstone Energy Ltd on Monday said its placing and open offer will raise GBP67.6 million, after the pricing for the new shares was set at 800.0 pence per share.
The company intends to increase its stake in Canadian International Oil Corp, an existing portfolio company, by up to USD67.0 million, equivalent to about 20% of Riverstone Energy's enlarged gross assets, pursuant to a tender offer for outstanding shares and warrants of CIOC.
Riverstone Energy currently owns, indirectly through an entity ultimately controlled by Riverstone Holdings LLC, 14% of CIOC. This will increase to 16% as a result of recent investments due to complete in early December 2015. In total, Riverstone-managed funds currently own 41% of CIOC, rising to 49% following the recent investments.
Certain investors which backed Riverstone Energy's initial public offering, including REL Coinvestment LP, have decided against taking up their rights to acquire up to 2.2 million shares under the open offer. The remaining placed shares are subject to clawback.
AKRC Investments LLC, a cornerstone investor in the October 2013 IPO, has committed to take up its pro rata holding of 26.15% in the open offer, equating to an investment of GBP17.6 million.
In addition, AKRC has said it will subscribe for shares in the so-called excess application facility, which means its shareholding following the placing and open offer will amount to 27.5% of the company. This would result in AKRC subscribing for 1.1 million shares under the excess application facility, equating to GBP9.1 million.
Riverstone Energy said it has agreed not to issue further shares for six months following admission of the shares.
Shares in Riverstone Energy were down 4.3% at 801.0 pence late Monday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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