By Gavin Evans
March 29 (Bloomberg) — Royal Dutch Shell Plc has agreed to sell its New Zealand downstream assets to Infratil Ltd. and the Guardians of New Zealand Superannuation for NZ$696.5 million ($492 million.)
The purchase, which remains conditional on funding and regulatory approval, will be funded with NZ$420 million of equity and a NZ$600 million banking facility, Wellington-based Infratil said in a statement to the New Zealand stock exchange.
Shell, Europes biggest oil company, is selling its New Zealand fuel retailing and refining interests as part of a global strategy to focus on oil and gas production in expanding markets. It agreed in November to negotiate exclusively with the Infratil-led venture on the sale of the groups 229 filling stations, port terminals and a 17 percent stake in New Zealand Refining Co.
Shells decision to sell was a once in a generation opportunity, Infratil Managing Director Marko Bogoievski said in the statement. The goal from here is to continue to provide high-quality fuels at competitive prices and to leverage the benefits of a New Zealand owned and managed downstream business.
Shell has operated in New Zealand for 97 years and began exploration there in 1955. It is retaining its oil and gas assets, which include stakes in the nations Maui, Kapuni and Pohokura gas fields.
New Zealand Superannuation is a government pension fund.
–Editors: Tracy Withers
To contact the reporter on this story: Gavin Evans in Wellington at [email protected]
To contact the editor responsible for this story: Iain Wilson at [email protected]
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