Asia/Pacific News
Chevron Looks to Sale Stake in Australia's Caltex
Chevron Corp. is attempting to sell its 50 percent stake in refining company Caltex Australia Ltd. for $3.6 billion, The Wall Street Journal reports.
Goldman Sachs will be the underwriter on the deal, who is reportedly helping Chevron sell 135 million shares at $34.20 each, 9.7 percent lower than Caltex's closing share price on Friday.
"This transaction reflects Chevron's commitment to regularly review our portfolio and generate cash to support our long-term priorities," said Michael Wirth, executive vice president for downstream.
"It is aligned with our previously announced asset sales commitment."
According to other reports, the deal will become Asia's largest block transaction once closed.
Chevron is reportedly attempting to sell the shares to a group of institutional investors, with the sale prompted by the 30 percent drop in profit in 2014 that was due to plunging oil prices.
Meanwhile, Caltex shares have reportedly tripled over the past half a decade as it moved away from less profitable fuel refining to focus on product distribution.
In 2012, it was reported that Caltex was preparing for the shift by turning its Kurnell refinery in Sydney into Australia's biggest fuel import terminal.
