13/06/2008 - 16:42

Gas crisis forces Burrup to delay IPO

13/06/2008 - 16:42

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Pankaj Oswal's Burrup Holdings Ltd has today announced it will postpone its $502 million initial public offer as it awaits further guidance from Apache Energy Ltd on the expected resumption of gas supplies.

Gas crisis forces Burrup to delay IPO

Pankaj Oswal's Burrup Holdings Ltd has today announced it will postpone its $502 million initial public offer as it awaits further guidance from Apache Energy Ltd on the expected resumption of gas supplies.

The company said it will not accept applications for shares and has suspended the institutional bookbuild that was to take place early next week.

Funds raised from the offer were to contribute to the construction of a new $600 million ammonia nitrate plant.

Burrup closed down its existing liquid ammonia plant on the Burrup Peninsula on Tuesday, and had brought forward maintenance plans in light of the gas crisis currently engulfing the state.

It is the second time the company has had to shelve its IPO plans. In March the company canned plans for the IPO due to the market downturn.

A copy of the Burrup statement is pasted below:

Burrup Holdings Limited (Burrup) advises that it is awaiting further guidance from Apache Energy Limited (Apache) on the recent incident at Varanus Island and the expected timing of restoration of gas supply.

Due to the change in circumstances, Burrup will not accept applications made under the Prospectus dated 19 May 2008. Burrup also advises that the Institutional Bookbuild will not take place on Monday, 16 June and Tuesday, 17 June as originally contemplated under the Prospectus.

When further clarity is received from Apache on the expected timing for restoration of gas supply, Burrup will be in a position to provide an update on the timetable for the IPO and the issue of a supplementary prospectus. The supplementary prospectus will contain full details of the revised timetable for the IPO and include a new application form.

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