Nova Scotia Government to Sell NSRL
Nova Scotia Resources Ltd., the province's Crown corporation with a stake in the offshore energy business, is going up for sale.
"Offshore exploration and development is an expensive and volatile business, with considerable risks that are not well suited for government," said Neil LeBlanc, Minister responsible for Nova Scotia Resources Ltd. "There are many better things we can be doing with the taxpayers' money."
The cabinet decision to sell Nova Scotia Resources Ltd. follows a recommendation from the board of directors of the provincial Crown corporation. The decision to put the company on the market came after a thorough business review of various options by the board, assisted by Scotia Capital Inc., one of Canada's leading investment dealers.
Nova Scotia Resources Ltd.'s primary asset is an 8.4 per cent interest in the Sable Offshore Energy Project. With the project now on stream and in its early development period, this is a good time to put the company up for sale. With rising energy prices and growing involvement in the Atlantic offshore by many energy companies, the province hopes to attract considerable interest in the company.
"The sale process will be conducted under the auspices of NSRL, assisted by an investment banking organization with considerable experience in the energy business and sales by governments to private purchasers," said Steve Parker, chairman of Nova Scotia Resources Ltd. The board of directors will meet shortly to select an appropriately experienced firm.
Mr. Parker said the company will be willing to look at serious offers from interests with the financial strength and energy experience needed to operate such a firm. Detailed company information will be available for qualified bidders.
Further details and timing of the sale process will be available once the investment banking firm has had an opportunity to finalize its recommendations to Nova Scotia Resources Ltd.
Mr. LeBlanc emphasized that the government intends to sell the Crown corporation as long as it receives a fair market value price.
"A considerable amount of work has been done to determine the value of NSRL both on a sale basis and should the company be retained by government. We believe the highest value for the taxpayers comes from a fair market value sale," said Mr. LeBlanc.
No deadline for the completion of the possible sale has been set.
"We will let the board of NSRL and the investment bankers do their work. They will bring us a recommendation when they feel the process has achieved maximum value for the company."