Z Energy IPO Priced

Friday 16th August 2013

Z Energy IPO priced at $3.50 per share; 60% of Z Energy to be sold; NZX and ASX listing and quotation 19 August

Z Energy shareholders, Infratil Limited and NZSF Aotea Limited (on behalf of the New Zealand Superannuation Fund) are pleased to announce that their joint owned company Z Energy Holdings Limited has conditionally agreed to sell 60% of Z Energy in its Initial Public Offer, realising gross proceeds of $840m ($420m each). The Final Price per Offer Share has been set at $3.50, in the middle of the indicative price range of $3.25 - $3.75. Infratil Limited’s and NZSF Aotea Limited’s (on behalf of the New Zealand Superannuation Fund) retained shareholding in Z Energy (through Z Energy Holdings Limited) will be 40%.

Infratil CEO Marko Bogoievski said the market’s response to the IPO was very strong across the board.

“We received a strong response from the retail broker network, with their allocations requiring significant scaling. We have also been delighted with the positive response from institutional investors, which we see as a validation of the New Zealand economy, the transport fuels industry, and the achievements of Z under our ownership. “

“Our feedback suggests investors have been attracted to Z Energy’s cash flows, dividend outlook and range of potential future growth areas.”

“Z Energy has been a very good investment for Infratil and while we have reduced our holding, we remain significant shareholders.”

New Zealand Superannuation Fund spokesperson Matt Whineray said the Fund was pleased to have been involved in Z’s success over the last three years. “We look forward to supporting Z’s Board and management as a listed company alongside new shareholders.”

Mr Whineray said the Fund continues to hold a significant investment in Z. “The Fund’s remaining 20% stake is still one of our largest investments. We look forward to continuing to share in the Z story.”

Mr Whineray said the Fund would be reinvesting the proceeds of the sale in other investment opportunities in New Zealand and internationally.

Z will be New Zealand’s first listed transport fuels distribution company and is expected to be among the largest 20 New Zealand companies on the NZX main board. Shares in Z are expected to commence trading (initially on a conditional settlement basis) on the NZX Main Board at 11am New Zealand time on Monday 19 August and on the ASX (initially on a conditional and deferred settlement basis) at 11am Australian Eastern Standard Time on Monday 19 August.

Z Energy was purchased by Infratil and the New Zealand Superannuation Fund from global energy company Shell in 2010, with each party taking a 50% share.

As outlined in the combined investment statement and prospectus dated 25 July 2013, the remaining shares held by Infratil and the NZSF Aotea Limited will be subject to transfer restrictions until after the release of Z’s results for the half year to 30 September 2014.

First NZ Capital, Goldman Sachs, Deutsche Bank/Craigs and Forsyth Barr acted as Joint Lead Managers in the offer.

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