Riverstone thirsty for more of CIOC

The London-based energy investment firm intends to increase its stake in Canadian International Oil Corp (CIOC) by up to $67m, it announced, equivalent to around 20% of Riverstone's enlarged gross assets.

At the time of the offer, Riverstone indirectly held 14% of CIOC.

The offer opened on Monday on the basis of one new ordinary share for every nine Riverstone ordinary shares in issue.

As part of the £65m capital raise, Riverstone also launched an underwritten placing of around £48m with the announcement.

Approximately 26% of Riverstone’s IPO investors had chosen not to take up their entitlements under the open offer.

“This is a unique opportunity to increase our ownership in one of our best performing portfolio companies, as evidenced by CIOC’s rapid production growth”, said Riverstone chairman Sir Robert Wilson.

“The capital we are raising and investing will allow us to take advantage of this specific opportunity offering significant long-term value enhancement for REL investors”, he added.

The company agreed not to issue further shares for six months following the admission, pursuant to a lock-up arrangement with JP Morgan Cazenove and Goldman Sachs.