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SAN ANTONIO -- Valero Energy Corp. commenced the sale of its remaining 20-percent interest in CST Brands Inc. Subject to market conditions, Valero plans to sell the remaining 13,112,564 shares it currently owns in CST Brands.
Valero spun off CST Brands -- operator of Corner Store locations in the United States -- on May 1. At that time, Valero sold 80 percent of the company, with a promise to sell its remaining stake in the near future.
The underwriters of CST Brands' initial public offering -- Citigroup Inc., Wells Fargo Securities LLC, JP Morgan Chase & Co., Mizuho Securities and RBC Capital Markets -- have a 30-day option to purchase up to 1,966,884 of the shares currently being sold by Valero.
CST Brands is not selling any shares in this offering, and will therefore receive no proceeds from the transaction.
The price Valero receives will depend upon demand for the shares and various market conditions. CST Brands traded for $32.95 per share on the NASDAQ National Market this morning. Hence, if Valero were to sell all of its shares at the current market price, it would receive more than $432 million in proceeds.
San Antonio-based CST Brands Inc. operated 1,041 Corner Store convenience stores and gas stations in the U.S., as well as 840 Dépanneur du Coin locations in Canada as of Sept. 30.