LOS ANGELES, March 1, 2000 (PRIMEZONE) -- Occidental Petroleum Corporation (NYSE:OXY) said today it has agreed to sell for $29.61 Canadian per share its 29.2 percent stake in Canadian Occidental Petroleum Ltd. for gross proceeds of approximately $1.2 billion Canadian. Occidental expects its after-tax net proceeds from the sale to be approximately $700 million U.S. and to report a gain of approximately $300 million U.S.
Of Occidental's total 40.2 million shares of CanOxy, 20.2 million will be sold to the Ontario Teachers Pension Plan Board. The remaining 20 million will be sold to CanOxy.
Occidental also said it has agreed to exchange interests of approximately equal value in certain oil and gas and chemicals operations with CanOxy. Specifically, Occidental will receive CanOxy's 15 percent interest in Occidental's oil and gas operation in Ecuador, giving Occidental 100 percent. CanOxy will receive Occidental's 15 percent interest in CanOxy's sodium chlorate operations in Canada and in Taft, Louisiana.
The transactions are subject only to approval by CanOxy stockholders and Canadian and U.S. regulators.