BRENTWOOD, Tenn. -- Delek US Holdings Inc. said that it has signed a definitive agreement to acquire additional common shares of Lion Oil Co. The additional Lion Oil shares equal an interest of approximately 6.24% in Lion Oil, and will bring Delek's total equity interest in Lion Oil to approximately 35%. Total cash to be paid for the additional interest is approximately $23 million.
The transaction is subject to customary closing conditions and governmental approvals and is anticipated to close during the third quarter of this year.
Delek also announced that it has completed the acquisition of a 28.34% interest in Lion Oil. Total cash paid to the selling shareholders by Delek was approximately $65.4 million in the aggregate. As part of the transaction, Delek also issued 1,916,667 shares of its common stock, or 3.7% of its issued and outstanding shares, to TransMontaigne Inc., a wholly owned subsidiary of Morgan Stanley Capital Group Inc.
Uzi Yemin, president and CEO of Delek, said We believe that this investment enhances our portfolio and fits with our future plans.
Lion Oil, a privately held company, owns and operates a 75,000-barrel-per-day, high-conversion crude oil refinery in El Dorado, Ark., three crude oil pipelines and two refined petroleum products terminals in Memphis and Nashville, Tenn. The two terminals supply products to some of Delek's 188 convenience stores in the Memphis and Nashville markets.
Delek US Holdings, Brentwood, Tenn., is a diversified energy business focused on petroleum refining, marketing and supply of refined products, and retail marketing of fuel and general merchandise. The refining segment operates a high-conversion, independent refinery, with a design crude distillation capacity of 60,000 bpd, in Tyler, Texas. The marketing and supply segment markets refined products through its terminals in Abilene and San Angelo, Texas, as well as other third-party terminals. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of company-operated retail fuel and c-stores, operated under the MAPCO Express, MAPCO Mart, East Coast, Discount Food Mart, Fast Food & Fuel and Favorite Markets brand names.
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