RAK Petroleum Public Company Limited announced on Monday it would restructure and seek a listing on an international stock exchange.
The proposed restructuring includes transferring majority of the assets owned by the company and its subsidiaries to a newly formed Dutch company, which would be owned by another newly formed company in the UK, in exchange for shares of the UK firm.
Those shares would then be issued to RAK Petroleum shareholders on a pro-rata basis as a return of capital.
The assets to be transferred include RAK Petroleum’s 42.8 percent share in DNO International ASA, a Norwegian-based oil exporter that was the first foreign company to begin pumping oil in Iraq since the 1970s.
RAK Petroleum merged with DNO in November 2011. It is listed on the Oslo Stock Exchange.
In a statement on Monday, RAK Petroleum said during an extraordinary meeting on Sunday shareholders had approved a plan to decrease capital prior to the distribution of shares in the UK company by diluting existing shares by ten times.
Old shares would be cancelled and new shares in the UK company issued.
The UK company would then seek to list on a major European or North American stock exchange.