Caltex shares are tanking after Chevron's $4.7 billion sell-down

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Shares in Caltex fell hard in early trade after the US energy giant Chevron sold its half share in the Australian refinery company.

On Friday Chevron sold its entire stake in Caltex Australia for $4.7 billion. Demand was said to be strong among offshore institutional investors.

However, Caltex shares today opened down more than 9% to $34.42. This is a slight premium to the initial offer from Chevron of 135 million shares at $34.20 each late on Friday, which was a 9.7% discount.

Australian refiners have been hit by a 50% cut in global oil prices since the middle of 2014.

Royal Dutch Shell sold its Australian petrol station and refinery operations for $2.9 billion last year.

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