1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
SCHEDULE 13D-A
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)
CE FRANKLIN LTD.
(Name of Issuer)
COMMON STOCK, NO PAR VALUE PER SHARE
(Title of Class of Securities)
125151100
(CUSIP Number)
NEAL S. SUTTON
16740 HARDY STREET
HOUSTON, TEXAS 77032
(281) 233-5060
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
JULY 31, 2001
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box: [ ].
(Continued on following pages)
(Page 1 of 5)
2
--------------------- -------------------
CUSIP NO. 125151100 Page 2 of 5 Pages
--------------------- -------------------
--------------------------------------------------------------------------------
1. Name of Reporting Person
I.R.S. Identification No. of Above Person
Smith International, Inc. 95-3822631
--------------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [ ]
--------------------------------------------------------------------------------
3. SEC Use Only
--------------------------------------------------------------------------------
4. Source of Funds
WC
--------------------------------------------------------------------------------
5. Check Box if Disclosure of Legal Proceedings is Required Pursuant
to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6. Citizenship or Place of Organization
Delaware
--------------------------------------------------------------------------------
7. Sole Voting Power 9,366,382
Number of ----------------------------------------------------------
Shares 8. Shared Voting Power 0
Beneficially
Owned by ----------------------------------------------------------
Each Reporting 9. Sole Dispositive Power 9,366,382
Person
----------------------------------------------------------
10. Shared Dispositive Power 0
--------------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
9,366,382
--------------------------------------------------------------------------------
12. Check Box if the Aggregate Amount in Row (11) Excludes
Certain Shares [ ]
--------------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11)
54.6% (based upon the number of shares of common stock outstanding as
reflected in the issuer's report on Form 6-F for the quarter ended
March 31, 2001)
--------------------------------------------------------------------------------
14. Type of Reporting Person
CO, HC
--------------------------------------------------------------------------------
3
--------------------- -------------------
CUSIP NO. 125151100 Page 3 of 5 Pages
--------------------- -------------------
--------------------------------------------------------------------------------
ITEM 1. SECURITY AND ISSUER.
This Amendment No. 2 to Schedule 13D is filed by the undersigned to amend
and supplement the Schedule 13D, dated as of April 10, 2001 (the "Original
13D"), as amended by Amendment No. 1 dated July 5, 2001 ("Amendment No. 1" and
together with the Original 13D, the "Schedule 13D"). The Schedule 13D related to
the acquisition by Smith International, Inc. ("Smith") of the common shares, no
par value per share (the "CE Franklin Common Stock"), of CE FRANKLIN LTD., an
Alberta corporation (the "Company"). This Amendment No. 2 to Schedule 13D
reports Smith's acquisition of additional shares of the CE Franklin Common
Stock. The principal executive offices of the Company are at Suite 1900, 300 -
5th Avenue S.W., Calgary, Alberta, Canada T2P 3C4. Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in the Schedule 13D.
ITEM 2. IDENTITY AND BACKGROUND
Unchanged
ITEM 3. SOURCE AND AMOUNT OF FUNDS.
Item 3 of the Schedule 13D is amended by adding the following paragraph
after the third paragraph:
"On July 31, 2001 and August 21, 2001, Smith acquired in private
transactions 250,000 shares and 144,800 shares, respectively, of CE
Franklin Common Stock. The amount of funds utilized to effect the
transactions was $746,160, net of commissions. Smith utilized working
capital to acquire these additional shares."
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is amended by adding the following sentence to
the end of the fourth paragraph:
"On July 31, 2001 and August 21, 2001, Smith acquired in private
transactions 250,000 shares and 144,800 shares, respectively, of CE
Franklin Common Stock."
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the Schedule 13D is hereby amended and restated in its entirety
to read as follows:
"(a) Smith is the beneficial owner of 9,366,382 shares of CE Franklin
Common Stock (the "CE Franklin Shares"), representing approximately 54.6% of the
issued and outstanding shares of CE Franklin Common Stock.
(b) Smith has the sole power to vote or to direct the vote as well as the
sole power to dispose or direct the disposition of all 9,366,382 shares.
(c) Except as described herein, Smith has not effected any transaction in
the CE Franklin Common Stock in the past 60 days.
(d) No party other than Smith has the right to receive or the power to
direct the receipt of dividends from, or the proceeds from the sale of, the CE
Franklin Shares.
4
--------------------- -------------------
CUSIP NO. 125151100 Page 4 of 5 Pages
--------------------- -------------------
--------------------------------------------------------------------------------
See Item 3 above with respect to how and when the CE Franklin Shares were
acquired."
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT
TO SECURITIES OF THE ISSUER.
Unchanged
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Unchanged
5
--------------------- -------------------
CUSIP NO. 125151100 Page 5 of 5 Pages
--------------------- -------------------
--------------------------------------------------------------------------------
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: August 23, 2001
SMITH INTERNATIONAL, INC.
By: /s/ NEAL S. SUTTON
-------------------------------------
Neal S. Sutton
Senior Vice President -
Administration, General
Counsel and Secretary