| Mon 4 Nov 2002, 18:03 | | Petronas International Corporation Ltd - Relative |
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Petronas International Corporation Ltd - Relative Share Price Performance of
Energy Africa Limited
Petronas International Corporation Ltd
(Incorporated in Labuan, Malaysia)
(A wholly-owned subsidiary of Petroliam Nasional Berhad)
Not for release, publication or distribution in or into Australia, Canada or
Japan
Relative Share Price Performance of Energy Africa Limited
Background
Petronas International Corporation Ltd ("PICL") controls, directly and
indirectly, 65.3 per cent of Energy Africa Limited ("Energy Africa"), and
intends to consolidate further, and more actively exercise, its control of
Energy Africa.
PICL announced on 5 September 2002 its intention to make a final cash offer to
acquire the entire issued share capital of Energy Africa, other than those
shares already held by Engen Limited, PICL or their concert parties for a final
cash consideration of ZAR43.75 per Energy Africa share (the "Offer") (the "firm
intention announcement"). The Offer opened on 27 September 2002, the date PICL
posted the formal Offer document to Energy Africa shareholders, and the final
and last closing date of the Offer is 12 November 2002.
In the formal Offer document, PICL has detailed the risks inherent in Energy
Africa`s operations and the potential for significant share price volatility.
Share price performance
Since the firm intention announcement on 5 September 2002 to 1 November 2002
(the "period"), the Energy Africa share price has appreciated by 28.6 per cent.
During the same period, the Brent Crude oil price as reported on Bloomberg has
fallen 8.0 per cent(1), and a number of oil companies have announced reduced
production forecasts (e.g. Amerada Hess Corporation, BP plc and Talisman Energy
Inc.). In addition, the share prices of other exploration and production
companies with exposure to West Africa (e.g. Amerada Hess Corporation, Dana
Petroleum plc and Ocean Energy Inc.) have declined significantly during the
period. Furthermore, the share prices of exploration and production companies in
general, including those of the companies selected for comparison to Energy
Africa by Energy Africa in its Offer response document dated 10 October 2002,
have significantly underperformed the Energy Africa share price. This is
illustrated by the tables below.
The Offer will be open until 12 November 2002 and remains until then an
attractive and certain opportunity for Energy Africa minority shareholders to
sell their Energy Africa shares. There is no guarantee that Energy Africa`s
share price will remain at its current level.
Per cent (1)
change
Companies that have recently announced reduced production
forecasts
Amerada Hess Corporation (26.7)%
BP plc (8.3)%
Talisman Energy Inc. (8.4)%
Average (14.5)%
Exploration and production companies
with exposure to West Africa
Amerada Hess Corporation (26.7)%
Dana Petroleum plc (17.0)%
Ocean Energy Inc. (6.2)%
Average (16.6)%
Companies selected for comparison by
Energy Africa in its Offer response
document
Apache Corporation 1.2%
Amerada Hess Corporation (26.7)%
Anadarko Petroleum Corporation 4.8 %
BG Group plc (0.7)%
Cairn Energy plc (11.4)%
Oil and Natural Gas Company of India 5.0%
Paladin Resources plc 1.5%
Premier Oil plc 14.6% (2)
Santos Limited (1.4)%
Tullow Oil plc (5.7)%
Woodside Petroleum Ltd. (10.3)%
Average (2.7)%
Source: FactSet
Notes:
(1) Price movement calculated as the percentage change in the closing prices
from 5 September 2002 to 1 November 2002.
(2) The announcement of Premier Oil plc`s restructuring on 16 September 2002 has
been one of the factors affecting Premier Oil plc`s share price.
Johannesburg
4 November 2002
This press release has been approved by Morgan Stanley & Co. Limited of 25 Cabot
Square, Canary Wharf, London E14 4QA, United Kingdom solely for the purpose of
section 21(2)(b) of the UK Financial Services and Markets Act 2000.
Morgan Stanley South Africa (Pty) Limited is acting for PICL in connection with
the abovementioned transaction and no one else and will not be responsible to
anyone other than PICL for providing the protections offered to clients of
Morgan Stanley South Africa (Pty) Limited nor for providing advice in relation
to such transaction.
Date: 04/11/2002 05:42:00 PM Produced by the JSE SENS Department
