Valero Set To Spin Off CST Brands on May 1 To Shareholders Of Record On April 19

Thanks to several alert readers who point out that, while we were asleep at the wheel, Valero(VLO) announced the final details of its CST Brands spinoff. It was just last week that we reported the company was two steps away. Those steps are now complete. Valero issued a press release on April 4, confirming that it had received a private letter ruling from the IRS granting tax free status to the spin off. Subsequent to receipt of the ruling, the company’s Board approved the spinoff.

The company will be spinning off 80% of CST Brands on May 1. Valero shareholders on the record date of April 19 will receive one share of CST for every nine shares of Valero that they own.The company expects that both CST and VLO will begin trading on a when issued basis on April 17, and that CST will begin trading regular way under the ticker CST on May 2. The company will retain 20% of CST for at least six months, but plans to divest the stake once the six month period has passed.

The full information statement can be found here.  CST will operate around 1900 retail locations, a bit more than half in the U.S., and the rest in Canada. Over 60% of the U.S. locations are in Texas.

Disclosure: The author holds no position in any stock mentioned.

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• Valero’s board approves retail spin-off (mysanantonio.com)