Ampol has confirmed that it has entered into an agreement with investment manager Allegro for the sale of Gull NZ for approximately NZ$509 million plus approximately $63m in debt like items and a companion fuel supply agreement for the coming 5 years.
The Gull business in New Zealand comprises wholly owned subsidiaries of Ampol Limited, ALD Group Holdings NZ Limited, Gull New Zealand Limited and Terminals New Zealand Limited. Gull New Zealand Limited operates a network of 112 primarily unmanned fuel service stations and Terminals New Zealand Limited owns and operates a 91ML fuel import terminal at Mount Maunganui. Another wholly owned subsidiary of Ampol, ALD NZ Property Holding Limited owns six retail properties leased to Gull New Zealand Limited, and these properties will be transferred to Gull as part of the sale.
Gull has operated in New Zealand since 1998 and holds an approximate 8% market share.
David Bodger (General Manager of Gull) and his management team will be retained by Allegro.
The acquisition of Gull by Allegro is subject to approvals by the NZCC and the OIO. In addition, the transaction will be subject to Ampol successfully completing the acquisition of Z Energy.
Ampol committed to divest Gull in full to ensure any potential competition law issues were fully addressed as part of its application to the NZCC for approval to acquire Z Energy. The NZCC’s clearance decision is pending. If this clearance is obtained, the NZCC will then also need to approve Allegro as the purchaser of Gull and the relevant transaction documents.
It is expected the Gull divestment will occur within a prescribed period following completion of the scheme to acquire Z Energy which remains on track to complete in the first half of 2022.
Ampol intends to use the proceeds of the sale of Gull towards funding the proposed acquisition of Z Energy.
Elisha Radwanowski BCom(HRM&IR)