CANADA TO SELL 15% INTEREST IN PETRO-CANADA

Oct. 15, 1990

The Canadian government has introduced legislation to sell a 15% interest in state owned Petro-Canada. The planned sale is an initial move by the government to privatize the company. Federal Energy Minister Jake Epp said the company is being sold because Petro Canada needs cash-possibly as much as $500 million. The integrated company has assets worth an estimated $6.8 billion. No date was given for a public share offering. Market analysts said a sale is unlikely until 1991 because of current

The Canadian government has introduced legislation to sell a 15% interest in state owned Petro-Canada.

The planned sale is an initial move by the government to privatize the company.

Federal Energy Minister Jake Epp said the company is being sold because Petro Canada needs cash-possibly as much as $500 million.

The integrated company has assets worth an estimated $6.8 billion.

No date was given for a public share offering. Market analysts said a sale is unlikely until 1991 because of current weak stock markets and preparation time required.

Legislation, subject to approval by Parliament, says no more than 25% of shares could be held by foreigners and no more than 10% by any one investor.

Petro-Canada was established in 1975 when the government decided it wanted a window on oil operations.

Company Chairman Bill Hopper said last year Petro Canada needed more money to, among other things, help pay its share of development of Hibernia oil field off Newfoundland.

Petro-Canada reported first half earnings of $25 million on revenues of $2.7 billion this year, compared with earnings of $57 million on revenues of $2.4 billion in the same period of 1989.