OAKHURST, N.J. (DTN) -- CVR Energy, Inc. announced that its board of directors has authorized CVR Energy's management to explore a potential spinoff of its interests in its nitrogen fertilizer business, which is owned by CVR Energy through the general and limited partner interests it holds in CVR Partners LP.
If effected, the potential spinoff would create a new public company to hold such interests and separate the nitrogen fertilizer business from CVR Energy's refining and renewables businesses.
"We are exploring a potential spinoff transaction, which we think would, among other value-enhancing benefits, create a pure-play renewables and refining company, as well as a pure play fertilizer company," said Dave Lamp, president and CEO of CVR Energy.
If CVR Energy proceeds with the potential spinoff, it would likely be structured as a tax-free, pro-rate distribution to all CVR Energy stockholders as of a record date to be determined by the board of CVR Energy. If completed, upon the effectiveness of the potential spinoff transaction, CVR Energy stockholders would own shares of both CVR Energy, holding the refinery and renewables businesses, and a holding company, holding CVR Energy's current ownership of the general partner interests in, and approximately 37% of the common units of CVR Partners.
CVR Energy has not set a timetable for the completion of this potential transaction and said completion of the potential spinoff would be subject to various conditions.
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