Creststreet Asset Management Ltd. has successfully achieved liquidity on its major private investment in Athabasca Oil Sands Corp. on behalf of many of its funds and limited partnerships, the company said Tuesday.
Athabasca has been one of the most successful investments by Creststreet’s energy funds in the investment firm’s 10-year history. The value of its initial investment has risen more than 40 fold, Toronto-based Creststreet says.
Even after achieving liquidity on the majority of its position in Athabasca, it continues to be the largest holding for many of Creststreet’s funds and limited partnerships.
Creststreet’s funds began acquiring shares of Athabasca as early as 2006 for $1 per share with a purchase warrant at $1.25 per share.
At the end of August2009, Athabasca announced it had entered into a series of agreements with PetroChina Company Ltd., whereby PetroChina agreed to acquire a 60% interest in two of Athabasca’s oil sands projects for $1.9 billion and other consideration.
In March 2010, Athabasca paid shareholders a special dividend $4.25 per share and on April 8, Athabasca completed its initial public offering raising a further $1.35 billion. Its shares began trading on the Toronto Stock Exchange on April 8.
Even after having achieved liquidity on the majority of its investment, Athabasca continues to be one of the largest weightings in many of Creststreet’s energy funds.
“The Athabasca investment continues to give excellent exposure to upside in global crude oil prices and the further development potential of the company’s oil sands leases,” Creststeet says.
“We believe the company’s shares are trading at a discount to their underlying net asset value and will continue to appreciate as the company, which is now fully funded, makes progress in moving its three most advanced oil sands development projects into production over the next several years.”
As a result of the special dividend and the liquidity achieved in Athabasca shares, Creststreet will now move to complete the outstanding mutual fund rollover transactions for the Creststreet 2007 Limited Partnership and the Creststreet 2008 Limited Partnership.
Creststreet expects to release more information on the rollovers shortly.
IE