A Greenwich-based blank check company has submitted a $10 billion unsolicited offer to acquire PDV Holding Inc., the parent company of Venezuela-owned Citgo Petroleum.
The proposal by Blue Water Acquisition Corp. III — filed in the U.S. District Court for the District of Delaware — includes a $3.2 billion cash-or-stock settlement for holders of defaulted PDVSA 2020 bonds. The deal would steer Citgo’s core operations — including three U.S. refineries, lubricants and blending operations, midstream infrastructure, and a network of more than 4,000 branded service stations — into the hands of a publicly traded entity.
PDV Holding’s refinery portfolio spans Lake Charles, Louisiana; Lemont, Illinois; and Corpus Christi, Texas, with combined capacity exceeding 800,000 barrels per day.
A special purpose acquisition company, or SPAC, is a publicly traded shell formed to raise money through an initial public offering with the goal of acquiring an operating business. Blue Water Acquisition Corp. III, which raised $253 million in its June IPO, is the third such entity launched by the Blue Water platform and is managed from its headquarters in Greenwich.
Blue Water is led by Chairman and CEO Joseph Hernandez, an entrepreneur who has founded and managed several biotechnology and healthcare ventures in addition to overseeing the firm’s investment.
He said Blue Water’s proposal “is designed to deliver value for creditors, stability for employees, and ensure Citgo’s assets remain under U.S. ownership and public market transparency.”
The court had previously overseen a closed auction involving other bidders, but it is continuing to review unsolicited offers. A procedural hearing is scheduled soon in Delaware to consider the latest bid.
