By OGJ editors
HOUSTON, Sept. 18 -- Unocal Corp. said its subsidiary, Chicago Carbon Co., sold 4.9 million of its Tom Brown Inc. shares, which represented 85% of the 5.8 million shares held by Chicago Carbon.
Unocal expects to realize $120 million in pretax proceeds from the sale. The price was $25.75/share minus transaction costs. Net proceeds will be used to reduce Unocal's outstanding debt. Unocal expects to record a $35 million pretax gain in third quarter results.
Following a mandatory 90-day waiting period, Unocal also said it expects to sell the rest of the equity that it holds in Tom Brown.
In June, Unocal announced plans to sell its interest in 75 Gulf of Mexico fields to improve profitability of its Lower 48 E&P unit and to strengthen its balance sheet (OGJ, June 23, 2003, p. 45).
Unocal said its 2003 sales of exploration and production equity affiliate shareholdings will reduce proved reserves by 34 million boe from the Dec. 31, 2002, reserves level.
Standard & Poor's Ratings Services in New York, said Unocal's credit ratings would be unaffected by the sale of its investment in Tom Brown
