Valero to Sell Its Stake in CST Brands Retail Spinoff
"It's really the completion of the spin," exec says of stock offer
SAN ANTONIO -- Valero Energy Corp. is preparing to sell the remaining 20% stake it holds in CST Brands Inc., the fuel and convenience good retail division that it spun off in May, reported The San Antonio Express-News.
San Antonio-based CST Brands said it will offer 13,112,564 shares of common stock--Valero's stake--"as soon as practicable," according to a document it filed with the U.S. Securities & Exchange Commission (SEC).
Officials at the refining company had said when it completed the CST spinoff that it would sell its remaining shares.
"We said we'd dispose of them [the shares] within 18 months," Valero spokesperson Bill Day told the newspaper. "So now CST is registering to do that."
CST senior vice president Hal Adams said that Valero "will actually sell the shares, because they own them. But it's our responsibility to tell the SEC that it's going to happen."
The proceeds of the stock sale will go to Valero, Adams told the paper.
"It's really the completion of the spin," he said.
When the shares are offered, "our executive team will go out on the road and talk to investors and give our story again to people that Valero will hope to sell the shares to," Adams said.
As the spinoff occurred, Valero said it would hold its 20% stake for six to 18 months. CST's spinoff was effective May 1, putting the end of six-month period in early November.
As of Sept. 30, CST had almost 76 million shares of common stock outstanding and about 6,000 shareholders of record.
Based in San Antonio, CST Brands is a convenience store retailer with 1,900 locations in the United States and Canada and $13 billion in revenues. It is one of the largest independent retailers of motor fuels and convenience merchandise in North America, operating throughout the southwestern United States and eastern Canada offering an array of convenience merchandise, beverages, snacks and fresh food. In the United States, CST Corner Stores sell Valero fuels and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Depanneur du Coin and Corner Stores sell signature Transit Cafe coffee and pastries.
Valero, San Antonio, through its subsidiaries, is an international manufacturer and marketer of transportation fuels, other petrochemical products and power. Its subsidiaries employ approximately 10,500 people, and assets include 16 petroleum refineries, 10 ethanol plants, a 50-megawatt wind farm and renewable diesel production from a joint venture. More than 7,300 retail outlets carry the Valero, Diamond Shamrock, Shamrock and Beacon brands in the United States and the Caribbean; Ultramar in Canada; and Texaco in the United Kingdom and Ireland.