Kerr-McGee Completes Separation of Tronox
Kerr-McGee Corp. has completed the separation of Tronox Incorporated. As previously announced, Kerr-McGee distributed to its stockholders .20164 of a share of Tronox Class B common stock for each outstanding share of Kerr-McGee common stock they owned as of the record date of March 20, 2006.
"With the completion of the separation of Tronox, Kerr-McGee is now a pure-play oil and natural gas exploration and production company," said Luke R. Corbett, Kerr-McGee chairman and chief executive officer. "We already are executing our strategic plan as a pure-play E&P company with the right assets that provide a foundation of opportunities to continue delivering consistent, repeatable growth for our stockholders.
"I appreciate the effort and professionalism the employees of both Kerr-McGee and Tronox have shown in ensuring a smooth transition that I believe will prove beneficial to the stockholders of both companies," added Corbett.
Cash will be delivered in lieu of fractional-share interests to stockholders entitled to receive less than one share of Tronox Class B common stock. The distribution is structured to be generally tax free to Kerr-McGee stockholders for U.S. federal income tax purposes (other than with respect to any cash received in lieu of fractional shares or Tronox shares paid as a dividend on Kerr-McGee employee restricted stock).
Registered holders of Kerr-McGee common stock on the record date will receive an account statement showing their ownership in Tronox, which initially will be in book-entry form. The account statement will include information about how to request a physical stock certificate. Stockholders who hold their shares through brokers or other nominees will have their shares of Tronox Class B common stock credited to their accounts by their nominees or brokers.
During the next week, Kerr-McGee will provide stockholders with information to enable them to allocate their tax basis to their Kerr-McGee and Tronox shares, and with other information necessary to report their receipt of Tronox Class B common stock on their 2006 U.S. federal income tax returns.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More
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