Infratil and NZSFA Statement on Z Energy IPO
POSTED ON: 25 July 2013
Z Energy shareholders, Infratil and NZSF Aotea Limited (for the New Zealand Superannuation Fund), have confirmed plans to list up to 50%-60% of the company in August on the New Zealand and Australian stock exchanges.
Z Energy’s offer document was registered by the Registrar of Financial Service Providers today.
Infratil CEO Marko Bogoievski said Z Energy had strong cash flows, a good dividend outlook and had identified a range of potential future growth areas, including new retail service stations, customer offers and enhancements to Z’s terminal infrastructure.
“This listing is an opportunity for investors to take a stake in a major infrastructure and retailing company that plays a significant role in keeping New Zealand’s economy moving,” said Mr Bogoievski.
Mr Bogoievski said “Z Energy has been a very good investment for Infratil and while an Initial Public Offering will see us reducing our holding we will still have a significant investment after the proposed IPO.”
New Zealand Superannuation Fund spokesperson Stewart Brooks said Z Energy had an experienced and capable management team. “Over the last three years, Z has responded well to increased capital investment, successfully re-branding and placing a strong focus on customer service.
“As a result, Z has increased in value and now represents a significantly larger proportion of the Fund than it did when we purchased it in 2010. Reducing our stake via a partial listing will help diversify the Fund’s investment portfolio, as well as adding depth to New Zealand’s capital markets.”
Z will be New Zealand’s first listed transport fuels company and is expected to be among the largest 20 New Zealand companies on the NZX main board.
Mr Brooks said it was very important that people considering buying shares in Z Energy read the offer document. “The offer document contains detailed information on the key features of the company, the market in which it operates, its growth opportunities and risks.”
At the given price indication of between $3.25 and $3.75 per share, the listing will raise between $650m-$900m.
Mr Brooks said the funds raised would be re-invested by the NZ Super Fund in other investment opportunities in New Zealand and internationally.
Z Energy was purchased by Infratil and the Fund from global energy company Shell in 2010, with each party taking a 50% share.
As outlined in the offer document, the remaining shares held by Infratil and the Fund will be locked in until after the release of Z’s results for the half year to 30 September 2014.
Copies of the offer document can be obtained through a broker or downloaded at www.z.co.nz/investor-centre.
Marko Bogoievski also confirmed changes to the governance of the company as it prepares for a possible partial initial public offer.
Marko Bogoievski will remain as a director and the role of Chair will transition to Independent Director Peter Griffiths.
“Peter Griffiths is a highly respected and experienced director who has been on the Z board since the acquisition from Shell. He has a strong background in this industry and in Z Energy.”
Peter Griffiths is a veteran of the downstream fuels industry whose track record includes a decade as Managing Director of BP New Zealand Ltd as well as governance and senior management roles in that company’s regional operations. Mr Griffiths has also served on the boards of the New Zealand Refining Company, Liquigas and Bitumix. He is a director of Northland Port Corporation, New Zealand Oil and Gas, Wanganui Gas and New Zealand Diving and Salvage.
“We are currently working towards an August initial public offering and need to ensure Z Energy’s governance is appropriate to facilitate this transition,” he said.
Following the changes, the remaining Board members will include Paul Fowler and Al Dunn who were nominated by the NZSF Aotea Limited (on behalf of New Zealand Superannuation Fund); Lib Petagna and Marko Bogoievski who were nominated by Infratil; and Independent Directors Justine Munro and Abby Foote who were appointed to the Z Board as Independent Directors in May this year.
The $23 billion New Zealand Superannuation Fund, which is a savings vehicle designed to help pay for the rising costs of New Zealand’s universal superannuation scheme, has $3.3 billion invested in New Zealand, including more than $1 billion in the local sharemarket. The Fund has returned 8.99% per annum since inception in 2003.
Infrastructure investor Infratil, which is listed on the NZX and capitalised at over $1.4 billion, is an owner and operator of businesses in the energy (mainly renewable), airport and public transport sectors.
In the first instance media enquiries about the listing should be directed to Jonathan Hill, Z Energy, 04 498 0212, 021 440 090.
· Mark Flesher, Infratil, 04 473 3663
· Catherine Etheredge, NZSF Aotea, [email protected], 0274 777 501
Application has been made to NZX Limited (NZX) for permission to list Z Energy, and to quote the ordinary shares of Z Energy on the NZX Main Board. All requirements of NZX relating to that application that can be complied with on or before the date of this announcement have been duly complied with. However, NZX accepts no responsibility for any statement in this announcement. The NZX Main Board is a registered market operated by NZX, which is a registered exchange, regulated under the Securities Markets Act 1988.