Gull sale set at $572m

Ampol, which is bidding to take over Z Energy, has announced the sale of its New Zealand fuel retail subsidiary Gull for an enterprise value of $572 million.

The selling of Gull is needed for Ampol to get clearance from the Commerce Commission to purchase Z Energy.

In a statement, Ampol says it has sold Gull to Allegro Funds, an Australian private-equity firm. Allegro will pay $509m in cash, and assume Gull’s debt and lease obligations of $63m. Ares Capital and ASB are providing the financing for Allegro.

The takeover is conditional on the Commerce Commission approving Allegro as purchaser, approval by the Overseas Investment Office and Ampol completing its acquisition of Z Energy.

Ampol says it has committed to a five-year supply agreement with Gull, as requested by Allegro, subject to annual price reviews and termination rights. It adds Gull’s manager, Dave Bodger, and his team will be retained by the new owner.

Z Energy says: “The sale of Gull is an important step for the clearance of the Ampol and Z Energy scheme of arrangement.” 

Shareholders of Z Energy are due to vote on the takeover on March 25. Ampol has offered $3.76 a share – just below the $3.80 mid-point of an independent valuation of $3.54-$4.07.