Pittencrieff split plans finalised

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The Independent Online
PITTENCRIEFF, the oil and gas to telecommunications concern, has finalised details of a demerger of the two sides of the business, writes Robert Cole.

Pittencrieff's telecommunications operation, Pittencrieff Communications, was floated on the Nasdaq stock exchange in North America in June last year. The parent retained 54 per cent.

PCI will be given full management autonomy. PCI is to seek a listing on the London Stock Exchange and Pittencrieff will change its name to Pittencrieff Resources, underlining its involvement in oil and gas exploration.

If agreed by a special meeting, set for early May, shareholders in the established Pittencrieff company will get one share in Pittencrieff Resources for every one share held in the old company. They will get five shares in PCI for every 24 held in old Pittencrieff. There will be a cash alternative to Pittencrieff Resources shares but no cash for PCI stock.

If the separation is concluded Pittencrieff Resources will hold a placing and open offer to raise pounds 25m, to be used to buy an interest in oil and gas fields in Texas.

Old Pittencrieff also intends to pay a second interim dividend of 4p for 1993, the same as the 1992 final.