US oil producer Hess Corp, founded by Leon Hess with a secondhand truck delivering fuel oil during the depression, has been sold to Chevron Corp. The deal, led by Leon’s son, John Hess, puts the value of the stake controlled by the Hess family at about $5 billion.
John Hess, the current CEO of Hess Corp, along with family members and trusts, hold a total of 29.2 million shares, as cited in the latest proxy filing. Over 25 million of these shares are related to trusts, the Hess Foundation, a limited partnership and limited liability companies, indicating that the family may not beneficially own many of the shares.
Chevron agreed to buy Hess in an all-stock transaction that values the independent oil company at $171 per share.
Following the completion of the deal, John Hess, 69, who has been the Hess CEO since 1995, is expected to join the Chevron board. He stated in a conference call that he has no plans to sell down his family’s stake, which will rank among the largest holders of Chevron stock.
“We still get to participate in the upside,” Hess said on a call with analysts Monday. “This value accretion will go to Chevron shareholders of which I and my family are going to be one, and intend on holding the stock for a long time.”
As a result of the deal, Hess shareholders will receive $6.50 a share in dividends next year, a significant increase from the current $1.75.
More Details About Chevron Being Sold by CEO
Yahoo!finance shares more in-depth details: having started 90 years ago with a secondhand truck delivering fuel oil during the depression, Hess Corp, founded by Leon Hess, is being sold to Chevron Corp. The sale, agreed to by Leon Hess’s son, John Hess, effectively values the stake held by the Hess family at about $5 billion.
John Hess, serving as the CEO of Hess Corp, along with family members and trusts, collectively own 29.2 million shares in the company. This figure, reported in the latest proxy filing, includes more than 25 million shares tied to trusts, the Hess Foundation, a limited partnership, and limited liability companies—implying a large portion of these shares may not be beneficially owned by the family itself.
Chevron consented on Monday to the acquisition of Hess in an all-stock transaction, pricing the independent oil company at $171 per share.
Following the deal’s completion, John Hess, 69, who has held the CEO position at Hess since 1995, is expected to join the Chevron board. In a conference call post the takeover announcement, he stated his plan to retain his family’s stake, which is set to rank among the largest holdings in Chevron.
The official Chevron press release can be found here.