Z Energy Ltd shares went into a trading halt overnight pending completion of a bookbuild for Infratil Ltd to sell its whole 20% of the company and the NZ Superannuation Fund to sell 9.725%.
The indicative price range for the bookbuild was set at $6-6.20/share, down from Tuesday’s closing price of $6.63. The institutional bookbuild will close at 4pm this Wednesday, 30 September.
Infratil & the fund entered a 50:50 partnership in 2010 to buy the downstream assets business of Shell NZ, which became Z Energy, and 17.1% of The NZ Refining Co Ltd for a base purchase price of $696.5 million, plus an adjustment for actual net working capital in excess of $208 million at settlement date.
The 2 partners recouped $840 million when they listed Z Energy in 2013, selling 60% of it at $3.50/share.
Infratil will collect $480-496 million for its remaining 80 million shares, depending on the bookbuild price, and the super fund $233.4-241.2 million from its sale of 38.9 million shares.
The Guardians of NZ Superannuation’s chief investment officer, Matt Whineray, said today the fund would retain a stake of more than 10% in the company, reflecting the Guardians’ confidence in Z Energy’s business strategy & management team.
Mr Whineray said: “The current market environment provides an opportunity to reduce the fund’s large overweight position in Z Energy and realise further value from what has been a highly successful investment. We look forward to continuing our relationship with Z Energy through the retention of our significant minority stake.”
Attribution: Company & fund releases.