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Ottawa, September 22, 1995
1995-071

Petro-Canada Share Offering Closes

Natural Resources Minister Anne McLellan, Finance Minister Paul Martin and Secretary of State (Finance) Doug Peters today announced the closing of the public offering of the government's Petro-Canada shares.

Net proceeds to the government from this offering exceed $1.746 billion and are payable in three instalments over the next 18 months. Today, the government received net proceeds of $693 million from the first instalment.

"This sale further reinforces the government's commitment to getting government right," said Minister McLellan in Calgary. "Selling a significant portion of our interest in Petro-Canada is an important step towards that objective."

In Ottawa, Minister Martin said "this sale will result in fiscal savings for the Government of Canada and Canadian taxpayers. The net proceeds will reduce our borrowing requirements, lower our debt servicing costs and contribute to meeting our deficit targets."

In total, the government sold 123.9 million of its Petro-Canada shares through this offering, including the 5.9-million-share over-allotment option which the underwriters chose to exercise. As a result, the government's holding in Petro-Canada has been reduced to 49.4 million shares, or about 20 percent of the company.

Secretary of State Peters stated that "by retaining a 20 percent holding in the company, the government can benefit from a possible future increase in the price of Petro-Canada shares."

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For further information:

Hillary Geller
Office of the Minister of Natural Resources
(613) 996-2007

Don Moor
Office of the Secretary of State (Finance)
(613) 996-7861

Diane Lafleur Office of the Minister of Finance
(613) 996-7861