Shares of Caddo International Inc. (CII) (Pink Sheets: PTLD) are up 22 percent in Monday trading, moving up 2 cents to 11 cents on volume of 55,000 just after noon. Today the company announced it will spin off its wholly-owned subsidiary, Petrol Lind Drilling, to operate as an independent company, feeding shareholders a 20 percent dividend of the new entity.
Petrol Lind will focus its operations on the exploration and drilling of oil fields, operating with its own board of directors and management team. According to the statement, Petrol Lind intends to offer shares through an initial public offering; however, the anticipated date was not released.
In a press release, Mario Lanza, president of CII, said the split coincides with the newly restructured operations and business strategy of CII.
“In line with the recent restructuring and review of the CII operations, the strength and viability of this side of the business allow Petrol Lind Drilling to become a stand-alone operation. This was the obvious way of moving forward in line with the CII business model, while at the same time enhancing the value to our shareholders. Petrol Lind Drilling is in the process of finalizing and appointing board of directors and a management team, which will be announced shortly,” Lazna said.
The aforementioned restructuring includes the possibility of an acquisition expected to be finalized within the next few weeks. On September 27, CII announced ongoing negotiations regarding the proposed acquisition of DKG-East ZRT, an industrial equipment manufacturer for oil and gas industries in Hungary. Current assets are estimated at more than $20 million; sales of DKG are reported at $39.8 million.