Lundin Petroleum AB announced Monday that its board of directors has proposed to spin-off its assets in Malaysia, France and the Netherlands into a newly formed company called International Petroleum Corporation (IPC) and to distribute the IPC shares, on a pro-rata basis, to Lundin Petroleum shareholders.
Subsequent to an internal reorganization of Lundin Petroleum whereby the various subsidiaries holding the IPC assets will be acquired by IPC, and subject to satisfactory receipt of all necessary approvals and consents, including the approval of Lundin Petroleum’s shareholders, all of the shares of IPC will be distributed to existing Lundin Petroleum shareholders on the basis of one IPC share for every three shares held in Lundin Petroleum.
The proposed spin-off of the IPC assets will allow Lundin Petroleum’s management to solely focus on maximizing shareholder value from its Norwegian portfolio, which has continuously grown in size and value since Lundin Petroleum entered Norway in 2004, Lundin said in a company statement.
“The spin-off of our international assets into IPC creates an exciting new company with a strong balance sheet and a proven board and management team. Their focus will be to create value at a time in the cycle when the industry remains under-capitalized and multiple opportunities are available as companies rationalise their portfolios,” Ian H. Lundin, chairman of the board of Lundin Petroleum, said.
“With the spin-off, Lundin Petroleum will become fully focused on Norway, which I am convinced will serve to further crystallize the value of our high-growth asset portfolio in the North Sea and the southern Barents Sea,” he added.
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