Conoco Canada to buy remaining shares of Gulf Indonesia for $ 329 million

Conoco Canada Resources Limited, a wholly-owned subsidiary of US oil major Conoco Inc announced on Tuesday that the full board of directors of Gulf Indonesia Resources approved a proposal by Conoco Canada to acquire all common shares of Gulf Indonesia not owned by Conoco Canada or its affiliates at a price of US$13.25 per common share in cash or US$329 million in aggregate.

The transaction would be consummated through an all-cash tender offer to be governed by U.S. and Canadian securities laws.

Conoco Canada currently owns approximately 72 percent of the outstanding common shares of Gulf Indonesia. Gulf Indonesia is traded publicly on the New York Stock Exchange

Conoco Canada said in a statement that the acquisition of the minority shares of Gulf Indonesia would allow Conoco to optimize its operations in Southeast Asia.

JPMorgan and Merrill Lynch & Co. acted as financial advisors to Conoco and Conoco Canada in connection with this transaction.

?Conoco Canada's proposal is subject to, among other things, approval by the board of directors of Gulf Indonesia and the execution of definitive documentation. The tender offer will be subject to customary terms and conditions, including the tender of a majority of the minority of Gulf Indonesia shares,? said Conoco Canada in a statement.

Gulf Indonesia is Indonesia?s No.1 non-LNG gas producer with contract areas spans troughout Sumatra to East Java. (alex)