Cape Share News (CIU)

Mon, 9th May 2011 15:04

* Says new Cape to have the same board, management

* Sees 2 mln stg cost from restructuring



May 9 (Reuters) - British energy services firm Cape said it planned to establish a new UK-listed holding company with its tax base in Singapore and Jersey, a month and a half after the UK government raised taxes for oil producers and banks.

In March, Britain unexpectedly increased a supplementary tax charge on oil and gas production to 32 percent from 20 percent to help fund broader corporation tax cuts and lower fuel duty for hard-pressed consumers.

The company, which derives more than two-thirds of its profit from outside the UK, said the restructuring follows its growing international presence.

Cape expects costs of about 2 million pounds ($3.3 million) associated with the restructuring.

Over the next five years, the company, which provides insulation services to liquefied natural gas terminals, said it expected business to be driven primarily from the Pacific Rim and Far East regions.

This follows the company's expectation of securing two large LNG projects in the second half of 2011.

Cape also said it would apply to the UK Listing Authority for the new shares of 25 pence each to be admitted to trading on the London Stock Exchange's main market.

Cape shares, which have gained 29 percent in value since the company reported higher full-year profit in March, were down 0.3 percent at 523.5 pence at 1300 GMT on Monday on the London Stock Exchange.

(Reporting by Juhi Arora in Bangalore; Editing by Maju Samuel) ($1 = 0.599 British Pounds) Keywords: CAPE/

(juhi.arora@thomsonreuters.com; within UK +44 207 542 7717; outside UK +91 80 4135 5800; Reuters Messaging: juhi.arora.reuters.com@reuters.net)

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