BP NZ Holdings sells part of refinery share

BP New Zealand Holdings has sold down part of its holding in the nation’s only oil refinery operator, NZ Refining, at a discount.

BP New Zealand Holdings and Europa Oil NZ told NZ Refining after the market closed on Thursday that it planned to sell as much as 11.1 per cent of the company, reducing its holding to 10.09 per cent, NZ Refining said in a statement to the stock exchange yesterday. A trading halt on the shares was lifted after NZ Refining confirmed the sell- down was completed.

BP and Europa intended to sell 34.7 million shares for at least $ 2.30 a share, and sold at $ 2.32 a share, valuing the transaction at $ 80.5m. That price was a 6.9 per cent discount on Thursday’s closing price of $ 2.49.

The reduction in shareholding would not affect existing contractual arrangements between NZ Refining and BP, the company said.

“BP regularly undertakes reviews of its assets, partnerships and shareholdings around the world and this transaction is the outcome of one such global portfolio review,” head of Asia- Pacific fuels Andy Holmes said.

“BP is committed to remaining a strong and competitive participant in the New Zealand fuels market and to ensuring our long- term success as a quality fuel retailer, for which Refining NZ is an important component.”

Among NZ Refining’s other major shareholders, Mobil Oil New Zealand owns 17.2 per cent and Z Energy 15.4 per cent, according to NZX data.