Archive | Shell

Shell takeover due to complete tomorrow

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.

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Infratil & Super Fund sign letter of intent on Shell assets

Published 22 December 2009

Infratil Ltd and the Guardians of NZ Superannuation have signed a letter of intent relating to their potential acquisition of Shell NZ Ltd’s downstream assets.

 

The heads of the 3 parties said yesterday the letter of intent wasn’t an acquisition contract. “However, it does represent Infratil & the Guardians’ clear intention to proceed to acquire Shell’s New Zealand downstream assets if relevant pre-requisites are met, including the securing of third-party approvals.”

 

Last Friday, Infratil & the Super Fund said they were continuing to progress the necessary due diligence & documentation to acquire Shell’s sales & distribution activities in New Zealand and its stake in the NZ Refining Co Ltd. “The process is significantly advanced and is expected to complete early in 2010,” they said then.

Earlier stories:

4 November 2009: Infratil & Super Fund combine for Shell Downstream bid

13 February 2009: Shell contemplates selling out

 

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Attribution: Joint release, story written by Bob Dey for the Bob Dey Property Report.

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Infratil & Super Fund combine for Shell Downstream bid

Published 4 November 2009

Morrison & Co. confirmed yesterday that a consortium of Infratil Ltd & the NZ Superannuation Fund had entered into exclusive negotiations with Shell NZ Ltd over the possible acquisition of Shell’s refining & downstream (distribution & retailing) businesses. Infratil chief executive Marko Bogoievski said: “The scope of the proposed transaction includes, but is not limited to, a 17.1% stake in the NZ Refining Co Ltd, Shell NZ’s supply & distribution infrastructure and its retail & B2B fuel business. “The consortium has submitted a non-binding conditional proposal to Shell and has entered into the final phase of due diligence. Discussions & negotiation will continue during November and further advice on the status of the discussions will be provided as material developments occur. No further comment will be made at this time.” Shell downstream assets:

17.1% of NZ RefiningAccess to refinery & pipeline capacityOwnership/access arrangements to joint national distribution network, including 13 nationwide terminals & shipping infrastructure25% ownership of Loyalty NZ (Fly Buys)Sales & distribution network including, without limitation, 229 retail outlets, 95 truck stops and facilities at Auckland & Christchurch airports.

 

Other Shell interests in New Zealand include the upstream businesses of exploration & production, and a controlling stake in land development & roadworks company Fulton Hogan Ltd.

 

Earlier story:

13 February 2009: Shell contemplates selling out

 

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Attribution: Morrison release, story written by Bob Dey for the Bob Dey Property Report.

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Shell contemplates selling out

Published 12 February 2009

Shell Oil has told the NZ Refining Co Ltd it may sell its downstream businesses, which would affect its holding in the Marsden Pt refinery company.

 

Shell NZ Holding Co Ltd holds 17.14% of the NZ Refining Co Ltd. The 4 major oil companies have processing agreements which give them access to refinery capacity in line with their New Zealand market share.

 

Shell told the refinery company today it had started a strategic review to study the long-term ownership options of its downstream businesses in New Zealand.“Divestment of some or all of the downstream businesses are options under consideration, but no decisions have been made. Shell will make an appropriate announcement when a decision is made, but the review is likely to take some months,” it said.

 

Shell has upstream interests in exploration & production. Downstream, it owns 230 petrol stations & a controlling stake in land development & roadworks company Fulton Hogan Ltd. Its other interests include distribution & commercial activities, aviation, chemicals & marine fuel.Want to comment? Email [email protected].

Attribution: Company statement, story written by Bob Dey for the Bob Dey Property Report.

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