Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : TLM.TSE Talisman Energy -- Ignore unavailable to you. Want to Upgrade?

To: Edward M. Zettlemoyer who wrote (541)	11/3/1999 10:08:00 AM
From: Tomas	Respond to of 1713

Sudan: CNPC seen removing overseas assets in IPO -sources HONG KONG, Nov 3 (Reuters) - China National Petroleum Corp (CNPC) is expected to exclude overseas assets, including its Sudanese oil venture, from its proposed Hong Kong-U.S. listing vehicle, sources close to the deal said on Wednesday. The corporate finance sources said CNPC was aiming to invest all the proceeds from its initial public offering into the domestic Chinese operations. ``They intend to exclude all the overseas assets,' a corporate finance source said. ``It will only be the Chinese domestic assets to be included because they want the proceeds to be dedicated 100 percent into the Chinese domestic market.' A report in the Wall Street Journal said the Sudan operations were being dropped from the IPO to quell U.S. opposition to raising funds for a company operating there. The United States has imposed sanctions against Sudan, which critics accuse of tolerating slavery and violence against minorities. CNPC is the biggest stake holder in a 135,000 barrels-per-day crude field in Sudan with 40 percent equity. Malaysian oil firm Petronas has a 30 percent stake, Canada's Talisman Energy Inc (Toronto:TLM.TO - news) has 25 percent and the Sudanese government has five percent. But the decision to exclude the assets from CNPC's listing vehicle will not change the group's planned issue size, currently estimated at US$5 billion and US$8 billion, the corporate finance source said. CNPC was expected to announce in the next five days that it it will set up a new holding company for the dual listing in Hong Kong and New York. The source added the IPO would be launched around March 2000. Goldman Sachs, CNPC's financial adviser, is helping in the corporate restructuring, the source said. However, a Goldman Sachs official in Hong Kong declined to comment on the restructuring and the removal of the overseas assets. Chinese sources said earlier on Wednesday that CNPC was expected to announce early next week the establishment of its new holding company. They said CNPC president Ma Fucai was expected to be the holding company's chairman and CNPC's vice president Huang Yan to be the chief executive. Last month, CNPC said it was still aiming to list its shares abroad by March next year despite the surprise decision by another major Chinese oil group, CNOOC Ltd, to delay its IPO after scaling it back. CNOOC, a Chinese offshore oil firm, had cut the size of its offering to US$1 billion from US$2.2 billion to US$2.5 billion, but shelved it at the last minute, citing adverse market conditions. The CNOOC float has not been rescheduled. biz.yahoo.com ________________________________________________ CNPC to drop Sudan operations from IPO SINGAPORE, Nov 3 (Reuters) - China National Petroleum Corp (CNPC) will drop its Sudan operations from inclusion in the company it plans to launch as an initial public offering, the Wall Street Journal said on Wednesday. A spokesman for Goldman Sachs & Co in Hong Kong confirmed the restructuring, the paper's electronic edition said. The investment firm has been retained to help restructure CNPC and prepare it for the equity issue. The report said the new holding company would be unveiled in Beijing on Thursday before its prospective stock listing in New York and Hong Kong early next year. The newspaper said the Sudan operations were being dropped from the IPO to quell U.S. opposition to raising funds for a company operating in the controversial country. The U.S. has imposed sanctions against Sudan, which critics accuse of tolerating slavery and violence against minorities. The Treasury Department is reviewing whether U.S. investors would violate the sanctions against Sudan if they bought into the IPO. CNPC is the biggest stake holder in a 135,000 barrels-per-day crude field in Sudan with 40 percent equity. Malaysian oil firm Petronas has a 30 percent stake, Canada's Talisman Energy Inc 25 percent and the Sudan government five percent. biz.yahoo.com