Ampol bids for Z Energy, posts H1 profit
Fuel distributor Ampol has pitched a takeover offer for a New Zealand company on the same day as declaring a return to first-half profit.
Ampol, which had a $326 million net profit after tax, wants to buy all the shares in fuel supplier Z Energy.
The Kiwi company is similar to Ampol in that it distributes fuel to business customers such as airlines and shipping companies. It also runs petrol stations.
Ampol has offered $NZ3.78 for each share on the New Zealand stock exchange.
The Z Energy board have agreed to discuss the offer with Ampol, which may take four weeks.
Z Energy chair Abby Foote said the board wanted to develop a deal acceptable to shareholders.
Ampol chief executive Matt Halliday said Z Energy was a logical growth opportunity due to its similar business model.
Ampol already delivers transport fuel to New Zealand through a business called Gull.
Ampol and Z Energy leaders expect the former may have to sell Gull to satisfy New Zealand regulators.
In its first-half earnings report, the Australian company revealed the lengthy coronavirus lockdowns in Sydney and Melbourne had greatly affected trade in July.
Fuel volumes sold at petrol stations were down 15 per cent in July, compared to the same month last year.
Volumes in August were down 18 per cent, which was measured to August 15.
The company said the changes in consumer behaviour were reversing good momentum from the first-half.
Shareholders will receive an interim payout of 52 cents per share.
Shares were down 4.5 per cent to $26.29 at 1524 AEST on Monday.
Shares in Z Energy on the ASX were up 14.88 per cent to $3.32.
