New Zealand’s Z Energy Owners Name Bankers for Possible IPO
The owners of Z Energy Ltd., a gas station operator that supplies a third of New Zealand’s fuel, appointed bankers to advise on the possible sale of as much as 60 percent of the company to the public.
Joint investors Infratil Ltd. and the New Zealand Superannuation Fund named First NZ Capital Group Ltd. and Goldman Sachs New Zealand Ltd. as arrangers, and Craigs Investment Partners Ltd./Deutsche Bank AG and Forsyth Barr Ltd. as joint lead managers for the possible partial float, according to a statement today.
“While we have not yet fully committed to a listing or confirmed the detail around a listing, work is progressing well and is on track for a potential listing in the third quarter of the year,” Infratil Chief Executive Officer Marko Bogoievski said in the statement. The owners said in March they may sell as much as 60 percent of the company in a public share sale.
Infratil and New Zealand Superannuation could raise as much as $565 million from the share sale, the Wall Street Journal reported, citing people familiar with the matter which it didn’t identify. Such a sale would be the second-largest in New Zealand this year after the government’s offer of as much as 49 percent of Mighty River Power Ltd., which closes this month and may raise NZ$1.6 billion.
“At this stage we don’t have any figure” on how much may be raised, Tim Brown, an executive at Wellington-based Infratil, said in a telephone interview.
Infratil and New Zealand Superannuation jointly bought Royal Dutch Shell Plc (RDSA)’s fuel retailing assets in 2010 for NZ$696.5 million. The assets included a 17 percent stake in New Zealand’s only oil refinery, 220 gas stations and a distribution network involving port infrastructure.
Z Energy had revenue of NZ$1.49 billion in the six months ended Sept. 30, according to Infratil accounts on its website. It reports full-year results on May 3.
Infratil and New Zealand Superannuation said in March they each wanted to retain stakes in the company of between 20 percent and 30 percent if the sale proceeds.
Infratil today said it is willing to sell assets that are perceived to be low risk, such as Z Energy, to seek higher returning investments.
“The rationale reflects the possibility that Z shares could be worth more to someone else than to Infratil,” it said in its monthly Infratil Update publication, on its website.
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