LOS ANGELES, April 18, 2000 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) said today that it has completed the sale of its 29.2 percent stake in Canadian Occidental Petroleum Ltd. for gross proceeds of approximately $1.2 billion Canadian, following approval of the sale by CanOxy stockholders. The sale is expected to result in after-tax net proceeds of about $700 million U.S.
Dr. Ray R. Irani, Occidental's chairman and chief executive officer, said, "This transaction allows us to redirect the value of a low-return equity asset into a greater return for Oxy's stockholders with our acquisition of Altura Energy. The $700 million of after-tax proceeds is being applied toward our $1.2 billion investment in acquiring Altura, and the remaining $500 million will be raised by the sale of non-strategic assets by year-end."
Of Occidental's 40.2 million shares of CanOxy, 20.2 million were sold to the Ontario Teachers Pension Plan Board and 20 million to CanOxy. In addition, Occidental and CanOxy exchanged their respective 15 percent interests in joint businesses of approximately equal value, resulting in Occidental owning 100 percent of an oil and gas operation in Ecuador and CanOxy owning 100 percent of a sodium chlorate operation in Canada and Louisiana.
Note: This press release may contain forward-looking statements that reflect management's expectations and are based upon data available at the time. Actual results are subject to future events and uncertainties that could materially impact performance.