Oxy to divest Lyondell holdings
Occidental Petroleum Corp. plans to sell off its 8.3% holdings in Lyondell Chemical Co.
By OGJ editors
HOUSTON, May 11 -- Occidental Petroleum Corp. plans to sell off its 8.3% holdings in Lyondell Chemical Co.
Out of its 21 million Lyondell shares, Oxy already sold nearly 7 million to a single purchaser in a private transaction for more than $32/share.
Oxy also entered into a total return swap agreement regarding its remaining 14 million shares. This agreement will enable the company to realize a similar market price for future sales of such shares. Although Oxy intends to dispose of such shares on the open market during the next few months, the company noted that it has no obligation to do so.
Assuming its remaining 14 million shares are sold on this basis, including the receipts from the completed sale, Oxy anticipates aggregate net after-tax proceeds of $520 million and a net gain of $200 million.