Chevron exits Caltex Australia stake for $3.7 billion

U.S. energy giant Chevron sold its entire stake in refiner Caltex Australia Ltd for A$4.7 billion ($3.7 billion) in Asia’s biggest block deal this year, as falling oil prices and high costs hurt margins. Offshore institutional investor demand for the 50 percent stake in Australia’s biggest refiner was strong, with bidding driving the final price to A$35 a share, a spokeswoman for Goldman Sachs, the sole underwriter for the deal, confirmed on Saturday. The $3.7 billion deal is Asia's largest block transaction this year, eclipsing the government of India’s $3.6 billion sale of its stake in Coal India Ltd in January. Australia has seen a rush of block trades in the past month as investors look to capitalise on strong valuations following a share market that is rising on hopes of more interest rate cuts.

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