Kerr-McGee Corp. on Friday completed the separation of its chemicals unit, Tronox Inc., and is now a pure-play exploration and production (E&P) company.
With the separation, Kerr-McGee shareholders will receive 0.20164 shares of Tronox Class B common stock for each share of Kerr-McGee common stock they owned as of the record date of March 20. The separation was announced last year after financier Carl S. Icahn and his partners announced intentions to buy 2-9% of the company and then recommended Kerr-McGee sell off the chemicals unit (see Daily GPI, April 15, 2005; March 9, 2005; Feb. 24, 2005).
"With the completion of the separation of Tronox, Kerr-McGee is now a pure-play oil and natural gas exploration and production company," said CEO Luke R. Corbett. "We already are executing our strategic plan as a pure-play E&P company with the right assets that provide a foundation of opportunities to continue delivering consistent, repeatable growth for our stockholders."
In the next week, Kerr-McGee plans to provide shareholders with information to enable them to allocate their tax basis to their Kerr-McGee and Tronox shares, and with other information necessary to report their receipt of Tronox Class B common stock on their 2006 U.S. federal income tax returns.
The Tronox board of directors has named Thomas W. Adams chairman and CEO, succeeding Robert M. Wohleber, Kerr-McGee CFO, who resigned in connection with the distribution. Headquartered in Oklahoma City, Tronox is the world's third-largest producer and marketer of titanium dioxide pigment, with an annual production capacity of 624,000 tonnes.
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