Has Z Energy (NZX:ZEL) agreed to the takeover deal by Ampol?

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Has Z Energy (NZX:ZEL) agreed to the takeover deal by Ampol?

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Fuel supplier
Image source: Pavel Kubarkov, Shutterstock.com

Highlights

  • Z Energy’s management team has advised the stakeholders to give their consent to Ampol’s takeover offer.
  • The Company’s stakeholders would obtain a cash offer price of NZ$3.78/share.
  • The Scheme Implementation Agreement is dependent on fulfilment of numerous regulatory consents from NZCC and OIO.    

Supplier of fuel to retail clients and other big commercial consumers like mines and shipping entities, etc., Z Energy limited (NZX:ZEL; ASX:ZEL) has inked a binding (Scheme Implementation Agreement) or the Scheme with Ampol Limited (ASX:ALD).

Z Energy to be acquired by Ampol

Source: Copyright © 2021 Kalkine Media

Did you miss reading; Z Energy Resumes Dividend Payments 6 Months Early

What lies under ZEL ADL’s Scheme Implementation Agreement

Through the Scheme, Ampol has put forward its proposal to buy all the stakes of Z Energy. The deal is rumoured to be around NZ$2 billion.

A few pointers from the inked Scheme are as follows:

  • Stakeholders of Z Energy would obtain a cash offer price of NZ$3.78/share. They would also be gaining the initial NZ$0.05/share of the 6-month FY22 dividend amount sans cash offer price, with an overall value to Z stakeholders of NZ$3.83/share.
  • If the Scheme Implementation Agreement is not executed by March next year, the final cash consideration will be gradually enhanced to signify FY23 performance, to the limit of NZ$0.10/share.
  • The Company’s Board has suggested that the stakeholders vote in favour of the Scheme contingent on the Scheme consideration (in or beyond valuation range by the independent advisor) or in lack of a Superior Proposal made to the Company.
  • The Scheme Implementation Agreement is dependent on fulfilment of numerous regulatory consents from NZCC and OIO.   

Do read; How is Z Energy (NZX:ZEL) performing on receiving acquisition proposal?

Z Energy fundamentals

Image source: © 2021 Kalkine Media New Zealand Ltd, data source- Refinitiv

Why was exclusivity period with Ampol stretched last month?

Last month, Z Energy updated the market that the original one-month exclusivity period with Australian Company Ampol was further prolonged by 15 days to facilitate outstanding concerns to be tackled and establish if the major transaction term could be agreed upon.

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

When did Z Energy receive Ampol’s acquisition proposal?

In August 2021, Z Energy obtained a non-binding proposal from Australian company Ampol to buy Z Energy at an offer price of NZ$3.78/share.

Back then, the Company gave its consent for exclusivity and due diligence.

The offer price as per the Proposal signified a 22% premium to the last close on 12 August and a 26% premium to the month’s VWAP.

Before August, the Proposal from Ampol came as confidential, unsolicited, and non-binding through letters or verbal talks to the Company for NZ$3.50 and NZ$3.50/share.

On 11 October, Z Energy closed the market session, up 6.80% at NZ$3.610.

Also read; Has Z Energy’s (NZX:ZEL) fuel demand taken a hit?

Bottom Line

Z Energy’s acquisition by Ampol would help build a robust platform for improvement on lower emissions energy solutions for consumers throughout the ANZ region. 

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