Ampol (ASX:ALD) gets OIO approval to sell Gull, shares gain around 2%

3 min read | June 28, 2022 01:15 PM AEST | By Bhawna Gupta

Ampol (ASX:ALD) gets OIO approval to sell Gull, shares gain around 2% — Image source: © Ipopba | Megapixl.com

More about the fresh deal

According to the terms of the sale, Allegro will purchase 100% of Gull in exchange for roughly NZ$509 million in net cash proceeds and NZ$63 million in leases and debt-like assets assumed by Allegro. Following Allegro's request, Ampol has agreed to a five-year fuel supply contract with Gull under the terms of the sales agreement, subject to yearly pricing reviews and termination rights.

The OIO decision is the last step in completing the deal to sell Gull. Ampol and Allegro have two business days to agree on the completion date now that all other preceding conditions have been satisfied. After a deal is reached, completion should take place between 15 and 30 business days.

About Gull

Ampol Limited, ALD Group Holdings NZ Limited, Gull New Zealand Limited, and Terminals New Zealand Limited are all owned subsidiaries of Gull in New Zealand.

While Terminals New Zealand Limited owns and runs a 91ML gasoline import terminal at Mount Maunganui, Gull New Zealand Limited manages a network of 115 mostly unmanned fuel service stations.

Gull is running its business in New Zealand since 1998 and has a market share of about 8%. Allegro will continue to work with Gull's general manager, David Bodger, and his management group.

More about Allegro

Allegro is a privately held Australian investment firm with AU$4 billion in assets under management and was established in 2004. The company has a proven track record of acquiring and reviving quality companies across Australia and New Zealand.

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