Published 31 March 2010
A 50:50 consortium owned by Infratil Ltd & the Guardians of NZ Superannuation – and trading under the name Greenstone Energy Ltd – executed the agreement to acquire Shell NZ Ltd’s distribution & retail businesses and 17.1% interest in the NZ Refining Co Ltd this week. Completion is scheduled for Thursday 1 April, subject to drawdown of bank facilities & finalising certain third-party consents. The base purchase price is $696.5 million, plus an adjustment for actual net working capital in excess of $208 million at settlement date. Normal net working capital levels are estimated to average $250 million during a 12-month period.
In addition to an extensive retail network & commercial customer base, the acquisition includes New Zealand-wide distribution, storage, marine & aviation assets; the rights to use the Shell retail brand; a 25% share in Loyalty NZ Ltd (Fly Buys); and the ongoing supply of Shell fuels & products. Infratil & the Super Fund will provide total equity of $420 million, with bank funding for the balance of the purchase consideration. The banks are also providing a working capital facility to accommodate the fluctuating inventory of the business.
Infratil chief executive & managing director Marko Bogoievski said Infratil had divested about $400 million of assets in the year the company’s been working on the Shell purchase and, with this transaction, will have invested over $400 million in new assets. “The transactions leave Infratil with a more focused portfolio of investments that is well placed to generate good returns for its shareholders on both a short-term & longer-term basis,” he said.
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.