NZ Super Fund sells $292 million stake in Z Energy

Thursday 2nd June 2016

The New Zealand Superannuation Fund sold down its stake in Z Energy, pocketing $292 million and leaving it with 1.5 percent of the petrol station chain.

The fund sold 36.4 million shares at $8.01 apiece in an underwritten block trade, it said in a statement. The pension fund has reaped $1.1 billion in proceeds from Z Energy since investing $209.8 million in 2010 when it teamed up with Infratil to buy the local downstream assets from Royal Dutch Shell. Its residual stake is worth $47 million.

"Over the last six years, Z Energy has grown into a strong, dynamic listed company," Nigel Gormly, NZ Super head of international direct investment, said in a statement. "Our retention of a 1.5 percent holding in the company reflects our confidence in Z Energy’s management team and staff, who are doing an excellent job."

Last month the Super Fund said it was "a happy holder of Z Energy" after Australian media reported the pension fund was looking to sell its 10 percent stake.

Z yesterday settled its acquisition of Chevron New Zealand's Caltex and Challenge! brands for $785 million, pending the sale of 19 retail sites. Z expects to strip out between $25 million and $30 million of costs as it integrates the new systems into its existing business.

The petrol station chain's shares last traded at $8.19 and have gained 21 percent so far this year.

BusinessDesk.co.nz

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