💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 1-NZ's Infratil looking at some Shell NZ assets

Published 11/02/2009, 05:12 PM
Updated 11/02/2009, 05:15 PM

* Infratil in talks with Shell over NZ assets

* Deal expected to be worth around NZ$1 billion (Adds detail)

WELLINGTON, Nov 3 (Reuters) - New Zealand infrastructure investor Infratil Ltd is in talks with Royal Dutch Shell over acquiring the oil company's local downstream and refining businesses, in a deal expected to be worth about NZ$1 billion ($710 million).

Infratil said on Tuesday it had joined with the New Zealand state superannuation fund to negotiate with Shell for the assets, including a 17 percent stake in the New Zealand Refining Company , and the retail and distribution arms of the business.

The consortium has submitted a non-binding proposal and would make no further comment while negotiations are ongoing, Infratil said in a statement.

Shares in Infratil last traded down 1 cent at NZ$1.64. So far this year the stock has gained 1 percent against a 17 percent gain for the benchmark NZSX-50 index <.NZ50>.

Local media have reported that the Shell assets could be worth about NZ$1 billion, and have annual revenues of between NZ$100 million and NZ$150 million. Shell is one of the largest players in the energy market in New Zealand, with a network of more than 200 petrol stations and storage and pipelines. It said in February it was considering divesting some or all of the assets.

It also has stakes in many of the country's major oil and gas projects such as Maui, Kapuni and Pohokura, which it will retain.

Infratil's main investment is a 51 percent stake in Trustpower , and it also has energy businesses in Australia, airports in New Zealand and Europe and New Zealand's biggest bus company.

In an interview in July, Infratil's chief executive Marko Bogoievski said the company as on the lookout for acquisitions., The NZ government's superannuation fund, set up in 2003, invests in long term assets to help pay for future pension costs. It has funds under management of around NZ$15 billion. ($1=NZ$1.40) (Reporting by Adrian Bathgate)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.