Forest Oil (FST) to Spin-Off Lone Pine Resources, Issue Special Dividend
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Forest Oil Corporation (NYSE: FST) (Forest or the Company) today announced that its Board of Directors declared a special stock dividend to its shareholders of 70,000,000 shares of common stock of Lone Pine Resources Inc. (NYSE: LPR) owned by Forest, representing approximately 82% of the outstanding shares of Lone Pine common stock.
The distribution by Forest of the special stock dividend will be made on September 30, 2011 (the Distribution Date) to all Forest shareholders of record on September 16, 2011 (the Record Date).
The distribution will take place in the form of a pro rata common stock dividend to each Forest shareholder of record on the Record Date. As of August 31, 2011, Forest had 114,382,761 shares of common stock outstanding; accordingly, Forest shareholders will receive approximately 0.612 of a share of Lone Pine common stock for every share of Forest common stock held as of the Record Date. The final distribution ratio will be set on the Record Date and will be calculated by dividing the 70,000,000 shares of Lone Pine common stock to be distributed by the number of shares of Forest common stock outstanding on the Record Date. In lieu of fractional shares, Forest shareholders will receive a cash distribution.
The Board of Directors of Forest believes that the separation of Lone Pine and Forest will benefit Lone Pine by allowing it to resolve capital expenditure constraints that prevent it from pursuing the business development strategies that Lone Pine believes are most appropriate for optimal growth and operation.
The distribution by Forest of the special stock dividend will be made on September 30, 2011 (the Distribution Date) to all Forest shareholders of record on September 16, 2011 (the Record Date).
The distribution will take place in the form of a pro rata common stock dividend to each Forest shareholder of record on the Record Date. As of August 31, 2011, Forest had 114,382,761 shares of common stock outstanding; accordingly, Forest shareholders will receive approximately 0.612 of a share of Lone Pine common stock for every share of Forest common stock held as of the Record Date. The final distribution ratio will be set on the Record Date and will be calculated by dividing the 70,000,000 shares of Lone Pine common stock to be distributed by the number of shares of Forest common stock outstanding on the Record Date. In lieu of fractional shares, Forest shareholders will receive a cash distribution.
The Board of Directors of Forest believes that the separation of Lone Pine and Forest will benefit Lone Pine by allowing it to resolve capital expenditure constraints that prevent it from pursuing the business development strategies that Lone Pine believes are most appropriate for optimal growth and operation.
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