Icahn Enterprises LP Sets Sights on Expanding Stake in CVR Energy
In a bold move, Icahn Enterprises LP is poised to increase its ownership in U.S. oil refiner CVR Energy by over 20%, according to a recent report by the Wall Street Journal. As the controlling shareholder of CVR Energy, Icahn Enterprises aims to acquire an additional 15 million shares, pushing its stake to more than 81%.
A Lucrative Opportunity for Stockholders
The proposed deal is expected to benefit stockholders, who will have the opportunity to cash out at a premium. In a draft statement, billionaire activist investor Carl Icahn emphasized the advantages of the new offer, which will provide a lucrative exit for shareholders.
Funding the Acquisition
To finance this transaction, as well as other deals, Icahn Enterprises will reduce its dividend payout for the second time in a year. This decision comes in response to short-seller Hindenburg Research’s move to short IEP’s bonds last year.
Icahn’s Existing Stake in CVR Energy
Currently, Carl Icahn owns approximately 66% of CVR Energy, which operates two significant refineries in the United States. The 115,000 barrel-per-day Coffeyville refinery is located in Kansas, while the 75,000-bpd Wynnewood facility is situated in Oklahoma.
No Comment from Icahn Enterprises or CVR Energy
As of now, neither Icahn Enterprises nor CVR Energy has responded to requests for comment on the proposed deal. The move is expected to be formally announced on Friday, when Icahn and his firm release their draft statements.
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