Z Energy (NZX:ZEL): The Company expands exclusivity duration with Ampol

Highlights

  • Z Energy has extended the period of due diligence and exclusivity with Ampol, Australia’s petroleum company.
  • Last month, Ampol had proposed to acquire the Company.

Z Energy Limited (NZX:ZEL) has extended the four-week exclusivity period for another two weeks so as to ascertain whether transaction terms and documentation can be established or not.

Z Energy is an NZ transport fuel company, supplying fuel to big commercial customers like shipping and trucking companies, mines, airlines, vehicle fleet operators, etc., and to numerous retail customers.

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Image description: Z Energy expands exclusivity period with Ampol

Z to update the market on any developments

The Company has declared that though the earlier four-week exclusivity period with Ampol has been extended, there is no surety that the deliberations between the two parties would result in any agreement or deal.

ZEL would keep its stakeholders updated on the said development if any. The Company aims to notify the market by 11 October.

Its board is seeking external advice and is carefully evaluating the proposal made by Ampol.

Earlier in August 2021, Z Energy received a proposal from Ampol Limited (ASX:ALD) to acquire the former at a price of NZ$3.78 per share.

Based in Sydney, Ampol is an Australian petroleum company, which owns and manages the Gull fuel distribution business across New Zealand.

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On 27 September, Z Energy was down by 1.17% at NZ3.390, at the time of writing.

Bottom Line

Z Energy is considering all the aspects related to the Ampol’s proposal and does not want to take any decision in haste.

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