Nexen has acquired ownership of an additional 6,855,875 exchangeable limited partnership units (exchangeable units) of Canexus Limited Partnership ("Canexus LP"), a subsidiary of Canexus Income Fund (the "Fund"). This would represent an additional 2.07% of the outstanding trust units of the Fund relative to Nexen's ownership as at December 15, 2008, if all of the exchangeable units outstanding were converted to trust units, for which the exchangeable units are exchangeable on a one-for-one basis. Nexen has acquired these additional exchangeable units over the past seven months through participation in Canexus LP and the Fund's Distribution Reinvestment Plan (the "DRIP").
Including the additional exchangeable units, Nexen now owns 63,493,414 exchangeable units which are exchangeable for 65.56% of the trust units of the Fund. On August 18, 2005, Nexen owned 52,285,714 exchangeable units, which were exchangeable for 63.5% of the outstanding trust units of the Fund at that time. On September 16, 2005, Nexen announced that the underwriters of the Fund's initial public offering had exercised a portion of their over-allotment option. The exercise of that option reduced Nexen's indirect ownership in the Fund to approximately 61.4%. On December 15, 2008, Nexen announced that it had acquired additional exchangeable units pursuant to the DRIP. The trust units of the Fund that are issuable upon exchange have been reserved for listing on the Toronto Stock Exchange.
The acquisition of exchangeable units was made by Nexen in accordance with its continued investment in the Fund and Nexen may acquire additional exchangeable units in the future pursuant to the terms of the DRIP. Nexen may in the future increase or decrease its holdings of exchangeable units as it may deem appropriate in light of the circumstances then existing.
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