Carl Icahn’s CVR Energy on Tuesday called off its months-long fight with Delek US Holdings, saying it would distribute its stake in the rival refiner to shareholders as part of a special dividend.
CVR, the largest shareholder in Delek with an about 15% stake, initially wanted to acquire the Brentwood, Tennessee, refiner and later sought to nominate three directors to Delek’s board.
Delek shareholders this month rejected CVR’s candidates and elected all the eight Delek nominees to the board.
CVR said on Tuesday it no longer wanted to acquire another refiner and agreed to issue a $492 million special dividend, payable in cash and its shares in Delek.
“This special dividend should allow us to monetize again on our investment in Delek – which would be nearly $116 million based on Delek’s closing stock price on May 10,” Chief Executive Officer Dave Lamp said in a statement.
Icahn Enterprises and affiliates, which own nearly 71% of CVR, would directly hold nearly 10.5% of Delek’s stock after the distribution, CVR said, adding it would now focus on renewable fuels.
Delek did not immediately respond to a request for comment.
Source: Reuters.com