Infratil, NZ Super Fund in talks to acquire Shell assets

Infratil and the New Zealand Superannuation Fund have teamed up for exclusive talks with Royal Dutch/Shell Group over the possible acquisition of the energy company’s local refining and downstream businesses.

Shell owns 17.1% of New Zealand Refining, the nation’s only oil refinery, worth $219 million at today’s price. It also owns 25% of Fly Buys, 229 petrol stations, owns truck stops, Auckland facilities and fuel distribution.

Infratil and the fund “has submitted a non-binding conditional proposal to Shell and has entered into the final phase of due diligence,” Infratil chief executive Marko Bogoievski said in a statement.

“Discussions and negotiation will continue during November and further advice on the status of the discussions will be provided as material developments occur.”

Shell is exiting downstream businesses and has stopped exploration, leaving its oil and gas production from the Maui and Pohokura fields, and a stake in construction company Fulton Hogan. It is separately negotiating with the shareholders of Fulton Hogan to exit its stake via a share buyback.

Shares of NZ Refining rose 0.8% to $5.24 and have gained 15% in the past month. Infratil fell 0.6% to %1.64. 

Businesswire.co.nz

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