Nova Completes Sale of 26% Stake in Dynegy
Nova Chemicals completed the sale of its 26% stake (38.8 million
shares) in Dynegy Corp. last week receiving total after-tax cash
proceeds of $605 million, which is about $140 million more than was
expected when the sale was first announced in August of 1998. It
sold its stake to the public in three packages over the past five
The first stage, announced on Feb. 2, drew US$542 million. Stage
two, announced on April 18, brought in proceeds of US$153 million,
and the last sale of about 640,000 Dynegy common shares was made on
May 24 in the open market at an average price of about
US$71.63/share, resulting in proceeds of US$45.8 million. The total
pre-tax cash proceeds to Nova Chemicals were US$741 million.
When Nova announced the sale two years ago, company officials
said the marketplace has assessed "little or no value" to the
petrochemical producer's investment in the Houston-based marketing
and gas processing company. CEO Jeffery Lipton said it was "in the
best interest of Nova shareholders to redeploy the resources."
After the TransCanada-Nova merger in June 1998, Nova Chemicals
was spun off as a pure commodity chemical company, producing
olefins/polyolefins and styrenics.
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