Z shareholders pumped
TAKING a stake in Z Energy has proved a lucrative deal for the NZ Superannuation Fund, which is estimated to have made close to $3 million a week on the investment.
On Tuesday the NZ Superannuation Fund announced that it would cut its stake in Z Energy from 20 per cent to just over 10 per cent, while Infratil, the Wellington-based investment fund, plans to sell its entire 20 per cent stake.
Shares are expected to be sold to investors at between $6 and $6.20 each.
In April 2010 the two organisations paid $210 million each to buy the retail and distribution assets of what was Shell New Zealand, later rebranding the company as Z. Since then both the superannuation fund and Infratil have reaped $554m in dividends, interest and net sales proceeds, as they cut their shareholdings to 20 per cent each when the company floated in 2013.
When the shares listed they were sold to investors at $3.50 each, immediately rising on debut. Trading in Z Energy shares was suspended on Tuesday evening, with the last trade at $6.63.
If the shares were sold to investors at $6 each, both companies would receive another $480m before any fees, bringing the total proceeds to $1.034 billion, or a gain of $824m on their original investment.
The Superannuation Fund will retain a stake of more than 10 per cent in Z reflecting ‘‘confidence in Z Energy’s business strategy and management team,’’ chief executive Matt Whineray said, adding that Z Energy ‘‘has been a highly successful investment’’.
Z is currently seeking clearance from the Commerce Commission to buy Chevron New Zealand, owners of the Caltex brand.