Shares in the Edinburgh-based oil and energy minnow Pittencrieff Plc, which have performed superbly since it floated its Specialised Mobile Radio subsidiary in the US last year, put on another 14 pence at 430 pence yesterday after the company announced plans to separate its oil and gas business from its mobile communications interest. Pittencrieff still holds a 54% stake in Pittencrieff Communications Inc and is proposing two alternatives to shareholders – either they exchange their existing shares for either cash or for shares in each business, or they have Pittencrieff Communications pay Pittencrieff Plc cash for the latter’s entire 54% holding. Under the first option, the new oil and gas firm would apply for a listing on the London Stock Exchange; Pittencrieff Communications is already listed on Nasdaq. Pittencrieff shareholders would have the chance to receive an aggregate of 6.37m new common shares of Pittencrieff Communications on the basis of five Communications shares for every 24 Pittencrieff held, assuming all outstanding options are exercised. Communications will raise funds via an underwritten US public offering, some of which will provide a cash alternative to the Pittencrieff Communications shares offered to Pittencrieff Plc shareholders. The 6.4m shares were valued at $29.25 each on January 14, giving an aggregate value of UKP125m, equivalent to 409p per Pittencrieff share, leaving the oil and gas interests in the current share price valued at just 21 pence. Under the second option, Pittencrieff Communications would buy the 6.4i shares owned by Pittencrieff at the same price as the cash alternative under the first option. The setting of the proposals in legally binding agreements is planned by mid-year.
