Ampol’s plans to buy the NZ operations of Z Energy (which operates as Shell and some Chevron assets across the Tasman) has moved closer with the sale of its Gull business for $A532 million in cash and debt.
Australian based private equity firm Allegro Funds is buying the Gull chain of petrol stations and import facility for $NZ572 million ($A532 million), pending regulatory approval.
Ampol has had to sell Gull to satisfy the New Zealand competition regulator’s concerns about its $2 billion purchase of Z energy.
Allegro will pay $NZ509 million ($A474 million) in cash and take on $NZ63 million ($A58 million) of leases and debt. The Gull assets include a network of 112 petrol stations and a 91 megalitre import terminal.
“Under the sales arrangement, Ampol has committed to a five-year fuel supply agreement with Gull as requested by Allegro, subject to annual price reviews and termination rights,” Ampol – formerly known as Caltex – told the market on Monday morning.
It will use the money from the sale of Gull to fund the acquisition of Z Energy, providing the competition regulator is satisfied with both Allegro buying Gull and Ampol proceeding with the Z Energy acquisition.
