Viva Energy Group To Acquire OTR Group

April 05, 2023 08:23 AM AEST | By Reuters
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April 5 (Reuters) - Viva Energy Group Ltd:

* VIVA ENERGY TO ACQUIRE OTR GROUP

* VIVA ENERGY TO ACQUIRE OTR GROUP FOR A$1.15 BILLION FROM PEREGRINE CORPORATION

* TRANSACTION COMPLETION SUBJECT TO CUSTOMARY REGULATORY APPROVALS INCLUDING FIRB AND ACCC.

* EPS ACCRETION OF 6% TO 26% (6% ON PRO FORMA FY2022 BASIS)

* COMPLETION OF TRANSACTION IS EXPECTED TO OCCUR IN SECOND HALF OF 2023

* OTR NETWORK AND WHOLESALE FUEL BUSINESSES WILL BE ACQUIRED BY WAY OF SHARE SALE, WHILE SMGB BUSINESS WILL BE VIA ASSET SALE

* ACQUISITION TO BE SELF-FUNDED VIA A$1 BILLION OF DEBT AND WORKING CAPITAL, AND A$150 MILLION EQUITY ISSUANCE TO SELLERS

* APPROXIMATELY 6,500 OTR TEAM MEMBERS AND SUPPORT CENTRE STAFF WILL JOIN VIVA ENERGY GROUP ON THEIR CURRENT TERMS AND CONDITIONS

* VIVA ENERGY WILL RETAIN OTR HEAD OFFICE IN ADELAIDE

* EXPECT ACQUISITION TO DELIVER A$4.2 BILLION OF SALES REVENUE ON PRO FORMA FORECAST FY2023 (JUNE-END) BASIS, WITH A$2.4 BILLION NON-FUEL SALES

* TRANSACTION IS EXPECTED TO RESULT IN RECOGNITION OF RIGHT-OF-USE ASSETS AND LEASE LIABILITIES OF A$950 MILLION

* ADDS A$165 MILLION EBITDA (RC) POST INTEGRATION AND SYNERGIES

* SEES ADDITIONAL A$10-A$15 MILLION ANNUAL MAINTENANCE CAPEX Source text for Eikon: Further company coverage:


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