The board of directors of Kerr-McGee Corp. has approved the separation of its chemical business through an initial public offering (IPO) of shares of the Class A common stock of its wholly-owned subsidiary, Tronox Incorporated. The IPO is planned for the fourth quarter of 2005. Following the IPO, Kerr-McGee will continue to hold an interest in Tronox through ownership of Tronox’s Class B common stock. Kerr-McGee expects to distribute those shares to its stockholders through a spin off or split off during 2006.
“We believe the total value received through creating a separate public company to be superior to a sale of the chemical business,” said Luke Corbett, chairman and CEO. “The expertise, quality products and technological and cost advantages of our chemical business, combined with current market conditions, will allow us to create a strong stand-alone company that will unlock the value of the chemical business.”