Billionaire Carl Icahn won the right to buy oil refiner CVR Energy Inc. after a majority of shareholders agreed to sell their stakes to him in an offer that values the company at $2.6 billion.
Icahn, the largest shareholder in CVR, will own percent of the company’s shares in response to his $30-a-share tender offer, according to a statement today. Icahn’s bid includes a right for holders to get as much as $7 more a share if Icahn’s able to sell the Sugar Land, Texas-based company.
The board opposed Icahn offer. Last month it waived a poison-pill provision that would’ve blocked the takeover after Icahn won the support of a majority of shareholders. Icahn plans to resell CVR about 60 days after buying it.
Icahn has criticized CVR’s management and urged a sale of the company, which owns refineries in the Midwest and holds a majority stake in fertilizer-maker CVR Partners LP. CVR’s board has said the Icahn offer doesn’t properly value the company over the long term.
CVR, the owner of refineries in Coffeyville, Kansas, and Wynnewood, Oklahoma, has benefited from a boom in onshore oil production from shale formations that that lowered the cost of oil it processes. CVR shares have gained 60 percent this year.
CVR reported a first-quarter loss of $25.2 million, or 29 cents a share, compared with net income of $45.8 million, or 52 cents, a year earlier, according to a May 1 statement.
Excluding losses from contracts used to lock-in commodity prices and maintenance expenses, the company earned 75 cents a share, 9 cents more than the average of five analysts’ estimates compiled by Bloomberg.
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