(Bloomberg) — CrownRock Holdings, partly owned by Texas oil magnate Tim Dunn, is seeking to raise as much as $1.7 billion by selling a stake in Occidental Petroleum Corp., according to people familiar with the matter.
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According to a statement on Monday, CrownRock is selling 29.6 million Occidental shares. According to Bloomberg calculations, the price would correspond to a discount of up to 1.2 percent compared to Monday’s closing price of $58.98 per share. After the close of trading in New York, Occidental shares fell by up to 1.2 percent.
Houston-based Occidental completed its $10.8 billion purchase of CrownRock LP earlier this month.
CrownRock Holdings is the owner of the general partner that also owned CrownRock, LP, according to regulatory filings. The company was founded by Dunn and Lime Rock Partners, a private equity firm.
According to the statement, Occidental is not offering any common shares in CrownRock’s offering.
Occidental’s acquisition of CrownRock was one of the biggest oil deals in the U.S. last year. It was a windfall for Dunn, an influential Republican donor who is a force in Texas politics.
JPMorgan Chase & Co., Morgan Stanley and the Royal Bank of Canada are acting as underwriters for the offering, the statement said.
– With support from Kevin Crowley.
(Updated with context and details from the first paragraph)
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