Canexus Income Fund
TSX : CUS.UN

Canexus Income Fund

September 16, 2005 23:59 ET

Underwriters Exercise Over-Allotment Option of Canexus IPO

FOR IMMEDIATE RELEASE IN CANADA ONLY

CALGARY--(CCNMatthews - Sept. 16) - Nexen Inc. ("Nexen") and Canexus Income Fund ("Canexus") announced today that the underwriters of the Canexus initial public offering have exercised a portion of their over-allotment option to purchase 1.75 million trust units ("Units") at $10 per Unit for gross proceeds of $17.5 million.

Upon exercise of the over-allotment option Nexen will indirectly retain a 61.4% interest in Canexus. Nexen may in the future take such actions in respect of its holdings as it may deem appropriate in light of the circumstances then existing, including the sale of all or a portion of its holdings in the open market or in privately negotiated transactions to one or more purchasers. At this time, Nexen has not made a decision on the extent or timing of the disposition of its current holdings.

The underwriting syndicate for Canexus' initial public offering was co-led by Scotia Capital Inc. and CIBC World Markets Inc. and included RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., TD Securities Inc., National Bank Financial Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc., First Associates Investments Inc., Orion Securities Inc. and Peters & Co. Limited.

Canexus produces sodium chlorate and chlor-alkali products in several plants throughout Canada and Brazil largely for the pulp and paper and water treatment industries. Canexus operates reliable, strategically-located, low-cost production facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus will target opportunities to maximize shareholder returns and continue the delivery of high quality products to its customers. Canexus is listed on the Toronto Stock Exchange under the symbol CUS.UN.

Nexen Inc. is an independent, Canadian-based global energy company, listed on the Toronto and New York stock exchanges under the symbol NXY. We are uniquely positioned for growth in the North Sea, deep-water Gulf of Mexico, the Athabasca oil sands of Alberta, the Middle East and West Africa. We add value for shareholders through successful full-cycle oil and gas exploration and development and leadership in ethics, integrity and environmental protection.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province or other jurisdiction. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirement of such Act.

Forward Looking Statements

Certain statements in this report constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as "intend", "plan", "expect", "estimate", "budget", "outlook" or other similar words, and include statements relating to its intention to complete an offering of trust units of Canexus, the trust's intention to realize on its investment and continue to pursue attractive growth opportunities and the trust's significant opportunities to grow its distributable cash.

Contact Information

  • Gary Kubera
    President and CEO
    Canexus Limited
    (403) 699-6700
    or
    Richard McLellan
    CFO
    Canexus Limited
    (403) 699-6700
    Website: www.canexus.ca
    or
    Grant Dreger
    Manager, Investor Relations
    Nexen Inc.
    (403) 608-4403
    Website: www.nexeninc.com