Ampol gets approval to sell Gull New Zealand to Allegro Funds
New Zealand’s Overseas Investment Office (OIO) has approved the acquisition of Gull New Zealand by Allegro Funds Pty Ltd, an independently owned Australian investment manager. This paves the way for the sale of its Gull business in New Zealand by Ampol Limited.
In March, Ampol announced that it had entered into a binding agreement with Allegro for the sale of its Gull business. The transaction was subject to conditions, including regulatory approvals and Ampol successfully completing the acquisition of New Zealand’s Z Energy Ltd.
The Gull business in New Zealand comprises wholly owned subsidiaries of Ampol Limited, ALD Group Holdings NZ Limited, Gull New Zealand Limited and Terminals New Zealand Limited. Gull New Zealand Limited operates a network of 115 primarily unmanned fuel service stations and Terminals New Zealand Limited owns and operates a 91-million-litre fuel import terminal at Mount Maunganui. Another wholly owned subsidiary of Ampol, ALD NZ Property Holding Limited, owns six retail properties leased to Gull New Zealand Limited, and these properties will be transferred to Gull as part of the sale. Gull has operated in New Zealand since 1998 and holds an approximate 8% market share. David Bodger, currently general manager of Gull, and his management team will be retained by Allegro.
Under the terms of the sale, Allegro will acquire 100% of Gull for net cash proceeds of approximately NZD509 million (USD311 million) as well as the assumption by Allegro of approximately NZD63 million (USD38 million) of leases and debt like items. Under the sales arrangement, Ampol has committed to a five-year fuel supply agreement with Gull as requested by Allegro, subject to annual price reviews and termination rights.
The OIO decision is the final milestone towards the successful completion of the transaction to divest Gull as part of Ampol’s undertaking to the New Zealand Commerce Commission as part of receiving clearance to acquire Z Energy.
