HOUSTON (CNI)--Great Lakes Chemical announced Thursday that it has completed the previously announced spin-off of its petroleum additives business, Octel Corp.
Last July, Great Lakes announced its plans to create an independent, publicly-traded petroleum additives company made up of Octel Associates and Octel America, a developer and marketer of a wide range of performance-enhancing fuel additives.
The board of directors declared a stock dividend that gives Great Lakes shareholders one share of Octel common stock for every four shares of Great Lakes common stock owned on the record date of 15 May. Great Lakes expects Octel stock will begin trading on the New York Stock Exchange on or around 22 May.
In connection with the spin off, Great Lakes will receive a special cash dividend, net of taxes and transaction costs, of about $300m. The dividend was funded by cash reserves and debt retained by Octel.
Great Lakes of West Lafayette, Indiana said it will "stay intact as a speciality chemicals business."