Z Energy Ltd shareholders Infratil Ltd & NZSF Aotea Ltd (for the NZ Superannuation Fund) confirmed their plans yesterday to list up to 60% of Z in August. They intend to list the company on both the NZX & ASX. The offer document was registered by the Registrar of Financial Service Providers yesterday.
Infratil chief executive Marko Bogoievski said Z Energy had strong cashflows, a good dividend outlook and had identified a range of potential future growth areas, including new retail service stations, customer offers & enhancements to Z’s terminal infrastructure.
“Z Energy has been a very good investment for Infratil and, while an initial public offering will see us reducing our holding, we will still have a significant investment after the proposed IPO.”
Super Fund spokesman Stewart Brooks said Z Energy had responded well to increased capital investment over the last 3 years, successfully rebranding and placing a strong focus on customer service: “As a result, Z has increased in value and now represents a significantly larger proportion of the fund than it did when we purchased it in 2010. Reducing our stake via a partial listing will help diversify the fund’s investment portfolio, as well as adding depth to New Zealand’s capital markets.”
Z will be New Zealand’s first listed transport fuels company and is expected to be among the largest 20 New Zealand companies on the NZX main board.
At the price indication range of between $3.25-3.75/share, the listing will raise between $650-$900 million.
Infratil and the Super Fund bought Z Energy from global energy company Shell in 2010, with each party taking a 50% share. Their remaining shares on listing will be locked in until the release of Z’s results for the half-year to 30 September 2014.
There will be some governance changes ahead of listing. Mr Bogoievski will relinquish the chairmanship, which will be taken up by independent director Peter Griffiths, but will remain as a director.
Mr Griffiths is a veteran of the downstream fuels industry. He was managing director of BP NZ Ltd for 10 years, was a director of the NZ Refining Co Ltd, Liquigas & Bitumix and is a director of Northland Port Corp Ltd, NZ Oil & Gas Ltd, Wanganui Gas Ltd and NZ Diving & Salvage Ltd.
Link: Offer document
Attribution: Company release.