(Bloomberg) -- CrownRock Holdings, owned in part by Texas oil tycoon Tim Dunn, is seeking to raise as much as $1.7 billion from the sale of a stake in Occidental Petroleum Corp., according to people familiar with the matter.
CrownRock is selling 29.6 million Occidental shares, according to a statement Monday. The pricing would represent a discount of as much as 1.2% to Monday’s close of $58.98 apiece, according to Bloomberg calculations. Occidental shares fell as much as 1.2% after the close of regular trading in New York.
Houston-based Occidental closed on its $10.8 billion purchase of CrownRock LP earlier this month.
CrownRock Holdings owns the general partner that owned CrownRock, LP, according to regulatory filings. It was formed by Dunn and Lime Rock Partners, a private equity firm.
Occidental isn’t offering any shares of common stock as part of CrownRock’s offering, according to the statement.
Occidental’s takeover of CrownRock was one of the biggest US oil deals of the past year. It was a windfall for Dunn, an influential Republican donor who has become a force in Texas politics.
JPMorgan Chase & Co., Morgan Stanley and Royal Bank of Canada are the underwriters for the offering, according to the statement.
--With assistance from Kevin Crowley.
(Updates with context and details starting in the first paragraph)
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