Karoon Gas Australia
(ASX:KAR) has announced that it has launched a share offering of its South American assets, Karoon SA, in Brazil.
The initial public offering is expected to raise between $US621 million to $US773 million, with funds going towards exploration programs.
Karoon SA has applied to the Brazilian securities regulator, advising that when the offering is complete Karoon SA will become the owner of all of Karoon’s assets in Brazil and Peru.
Karoon SA will then become the sole company through which Karoon will undertake its activities in South America.
The pricing of the offer is anticipated on 10 November and Karoon says it will be made to the public of Brazil, but regulatory hurdles prevent it being offered to the public in the United States, Canada or Australia.
Karoon Gas Australia booked a $14.89 million net loss in the 2010 financial year.
