Valero Energy’s (VLO) board approved the spinoff of its retail business, CST Brands, as the company looks to change its focus.
Valero, which has a market value of about $22.7 billion, will give shareholders 80% of its equity in CST Brands. Shareholders will therefore receive one share of CST Brands for every nine Valero shares holder as of April 19.
The distribution of shares is expected to occur on May 1. CST Brands will trade on the New York Stock Exchange under the symbol "CST."
San Antonio, Texas-based Valero said it expects to hold onto its 20% stake in CST Brands for about six months following the distribution. It will then look to divest its interest.
The world’s largest independent refiner unveiled its plans to spin off the retail segment last year. Valero is also looking to sell its plants in California, after purchasing refineries in Louisiana and the U.K. last year.
Valero’s fourth-quarter earnings jumped to a seven-year high, as the company stopped buying light, sweet crude from overseas amid the boom in North American crude oil production.
Shares of Valero dropped 20 cents to $41.24 on Friday morning.