New Zealand: Infratil Exclusive Talks With Shell
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Monday, 09 November 2009 |
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The announcement that the Infratil consortium is in exclusive talks with
Shell for its fuel distribution business and other downstream assets
surprised some market analysts.
Infratil's share price was down 6 cents to $1.59 on the news, with
some speculation that it may need to raise money from shareholders to
finance its share of an investment in Shell. There was no
indication of how Infratil and the Super Fund might split the
investment. Shell put its downstream business, estimated to be
worth $1 billion, up for sale after a review in April. It has now
confirmed it has narrowed the field to one.
Infratil and NZ Super have the advantage of not being constrained by
overseas investment rules or competition watchdog scrutiny.
Infratil's understanding of the assets on offer is multi-faceted, with
its chairman, David Newman, a former BP boss and chairman of Loyalty
New Zealand. Another director, Mark Tume, is on the NZ Refining Company
board as well as the NZ Super Fund's board.
Shell Downstream & Fuel Distribution Business includes: service
station network of 229 Shell service stations; 95 Shell truck stops;
17% of listed company NZ Refining Co; 25% ownership of Loyalty
New Zealand; (Fly Buys) and facilities at Auckland and Christchurch airports.
PetrolWorld 051109
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