Australian fuel company Ampol has scrapped the option of a share float of cut price fuel retailer Gull Petroluem to answer concerns it could still wield influence over the company as it moves to takeover Z Energy.
Photo: RNZ / Dan Cook
Ampol has promised to divest Gull so it can buy Z Energy in a deal worth about $2 billion.
A share float of Gull or an outright sale were proposed to satisfy competition worries, but Ampol has told the Commerce Commission it will look for an outright sale.
"Ampol no longer proposes divestment of Gull New Zealand Limited ... by way of an initial public offering (IPO)," the Australian firm said in a letter to the commission.
"Ampol confirms that it continues to seek clearance ... to acquire Z Energy subject to a Proposed Divestment Deed whereby the Gull business will be divested by Ampol."
The Commerce Commission and Mobil Oil raised the effect on competition and the influence that Ampol might exert if Gull was sold through a share float.
"Ampol's Proposed Divestment Deed continues to commit Ampol to the divestment of Gull by way of a trade sale and otherwise on terms described ... in relation to robust hold separate, business preservation and information ring-fencing obligations pending the completion of a sale of Gull over a reasonable divestment period following," Ampol's letter said.
The Commerce Commission is due to make a decision on the takeover by 16 March but can extend that deadline.
A meeting of Z Energy shareholders to vote on the takeover has been scheduled for 25 March, after its board last week gave unanimous backing to the $3.78 a share offer.
An appraisal by Calibre Partners valued Z Energy shares between NZ$3.54 and $4.07.
If the deal is not sealed by the end of the month the offer price will gradually rise to a maximum extra payout of 10 cents a share.