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NEW YORK -- Valero Energy Corp. provided an update on its plans to spin off its retail business during a presentation to investors yesterday, according to a 24/7 Wall St. report. Valero has said the spinoff will create operational flexibility within the businesses and unlock value for its shareholders.
The company reported during the investor presentation that it requested a private-letter ruling from the Internal Revenue Service in October, and that the spinoff company filed a draft Form-10 registration form with the Securities and Exchange Commission in November.
The new retail business will be called Corner Stores Holdings Inc., according to the report. Valero plans to distribute 80 percent of Corner Stores' equity to existing Valero shareholders. Additionally, Corner Stores will trade on the New York Stock Exchange under the ticker symbol CST.
Valero expects the spinoff to be completed late in the first quarter or early in the second quarter of 2013. The company also stated that it will continue to "evaluate dispositions of poor performing assets;" continue to convert its closed Aruba refinery to a terminal, evaluate potential acquisitions; and continue to upgrade product streams, while also returning available cash to shareholders, according to the report.
Valero's shares were up 22 percent yesterday to $32.57 per share.