Caltex float worth $90M

Press, 30 April 1981, Page 19

Caltex float worth $90M

In the biggest industrial float ever seen in Australia, Caltex Australia, Ltd, is to offer local investors 25 per cent in its operations for sAust9o million. It will become the first of the international oil companies to have Australian equity and it will be the first time also that any ' Caltex subsidiary has had local participation. Details of the float, and of Caltex's record 1980 earnings of $57.2 million, were announced by the chairman and chief executive, Mr John Landels. Caltex owns the country's biggest oil refinery at Kurnell, in Sydney, and is set to become the second biggest marketer of petroleum products in Australia after ac-

quiring Golden Fleece service station chain from the H.C. Sleigh for $lOl million, earlier this month. Caltex will offer 45 million 100 c shares at a premium of 100 c, payable either in full on application, or 100 c on application and 100 c on November 2. Shareholdings would be restricted to individuals, companies, and institutions with an address in Australia in order to give effect to the Australian Government's desire to see the highest possible level of Australian ownership in the energy field, Mr Landels said. Transfers overseas can be refused under the company’s articles of association. Applications would open on May 27 and close not later than June 19. Caltex

employees and shareholders in H. C. Sleigh would be mailed copies of the prospectus, but there would be no special share entitlements.. Although Caltex expected the issue to attract strong institutional support, the company hoped for as wide a spread of shareholdings as possible, he said. Trading in the new shares is expected to open on Australian stock exchanges about the end of July or early August, and brokers say they could hit the market at anything from the 200 c issue price to 320 c. The value of the issue easily surpasses the previous biggest company float in Australia, last year’s $57 million issue by Energy Resources of Australia, which

runs the Ranger uranium project. Following the issue, Caltex Petroleum Corporation of the U.S., which is jointly owned by the Standard Oil Company of California and Texaco Inc., will own 75 per cent of Caltex Australia. Mr Landels said Caltex expected to pay a dividend for 1981 at the rate of 17.6 c a fully-paid shares. Mr Warwick Holcroft, the former managing director of Brambles Industries, Ltd, and Mr William Irvine, the chairman of Philip Morris (Australia), Ltd, have accepted invitations to join the Caltex board. Following these appointments, the board will comprise six Australians and five Americans, with one position vacant. -r