Nova Plans to Sell 26% Stake in Dynegy

Nova Corp. said it plans to sell its 26% stake in Dynegy Corp., worth $463 million at current prices, as part of a strategy to exit the energy business and focus on chemicals. Calgary, Canada-based Nova said it has hired Merrill Lynch & Co. to find a buyer for its Dynegy shares. It acquired the stake in 1994 and 1995 for about $260 million. Nova was created when TransCanada Pipelines sold the petrochemicals business of the former Nova Corp., a pipeline company it acquired last month, to shareholders. The new Nova retained the company name and stakes in Houston-based Dynegy and in Methanex Corp. Chevron Corp. of San Francisco and BG, Britain’s largest natural gas company, also hold 26% stakes in Dynegy and have right of first refusal on Nova’s stake. Last month, Nova agreed to buy most of the European and North American styrenics businesses of closely held Huntsman Corp. for $920 million. Dynegy trades and markets electricity and natural gas in North America and Britain. On the New York Stock Exchange, Dynegy shares slipped 13 cents to close at $12, and Nova rose 13 cents to close at $13.44.