Z Energy stakes sold
Z Energy’s shares resumed trading on Thursday morning after its two founding investors offloaded more than $700 million worth of shares.
Infratil, the Wellington-based investment fund, placed its entire 20 per cent stake in Z Energy, while the New Zealand Superannuation Fund cut its stake from 20 per cent to 10.75 per cent.
On Tuesday evening Z Energy’s shares were suspended from trading on the NZX and ASX exchanges while investment brokers placed the major block of shares. Shares were sold at $6 each, the bottom end of the range Infratil and the super fund indicated.
Z Energy’s shares traded at $6.63 on Tuesday, 2 cents off an all-time high hit on Monday when the company issued a bullish trading statement. They closed on Thursday down 82 cents, at $5.81.
Infratil chief executive Marko Bogoievski, who will remain a director on Z Energy’s board, said his company remained a ‘‘strong supporter’’ of the petrol retailer and its proposed acquisition of Chevron New Zealand. The purchase of the Caltex owner will require Commerce Commission clearance.
‘‘While we are positive about the outlook for the business, the current market provided an opportunity for a clean exit and the flexibility to recycle capital into new growth opportunities,’’ he said.
The investors did well out of the sale. Infratil and NZ Super bought the retail and distribution assets of Shell in April 2010 for a total of $420m, each taking a 50 per cent stake.
The 29.25 per cent stake sold this week raised close to the $840m from 2013’s initial public offering, in which a 60 per cent stake in the company was sold for $3.50 a share
Including interest, dividends and share sales, Infratil is estimated to have made a return of about 400 per cent on the investment over 51⁄ years.
Infratil said in a statement that since the ‘‘change to local ownership, Z Energy has successfully rebranded and applied greater focus to customer service’’.
Bruce Harker, head of energy of HRL Morrison & Co, which manages Infratil, will resign from Z Energy’s board when the transaction is completed.
Z Energy welcomed the ‘‘increased diversity’’ of its shareholder register, but said it would be business as usual.
‘‘Since Infratil and NZ Super bought this business in April 2010 these two organisations have been strong, supportive shareholders that have backed Z’s growth and innovation as a Kiwi company,’’ CEO Mike Bennetts said.
‘‘While we welcome NZ Super opting to retain an approximately 10 per cent holding in Z, we’re also pleased that almost 30 per cent of the company has been unlocked for a range of other investors which brings greater diversity and liquidity to our stock.’’
Bennetts said the sale would have no impact on its plans to acquire Chevron, a deal he said was ‘‘progressing’’.
The Commerce Commission is expected to make a decision on the application about December 18.