UPDATE: BP sells NZ Refining shares at 6.9% discount

Friday 17 March 2017 01:40 PM

UPDATE: BP sells NZ Refining shares at 6.9% discount

(Update adds detail in second paragraph, inserts third paragraph with share discount, fifth paragraph with BP comment, changes lede and headline to reflect update)

By Tina Morrison and Sophie Boot

March 17 (BusinessDesk) - BP New Zealand Holdings has sold down part of its holding in the nation's only oil refinery operator, NZ Refining, at a discount.

BP New Zealand Holdings and Europa Oil NZ told NZ Refining after the market closed yesterday that it planned to sell as much as 11.1 percent of the company, reducing its holding to 10.09 percent, NZ Refining said in a statement to the stock exchange this morning. A trading halt on the shares was lifted after NZ Refining confirmed the sell down was completed.

BP and Europa intended to sell 34.7 million shares for at least $2.30 per share, and sold at $2.32 per share, valuing the transaction at $80.5 million. That price was a 6.9 percent discount the yesterday's closing price of $2.49. Since trading resumed, the shares have slipped 1.6 percent to $2.45.

The reduction in shareholding won't affect existing contractual arrangements between NZ Refining and BP, the company said.

"BP regularly undertakes reviews of its assets, partnerships and shareholdings around the world and today’s transaction is the outcome of one such global portfolio review," head of Asia Pacific fuels Andy Holmes said. "BP is committed to remaining a strong and competitive participant in the New Zealand fuels market and to ensuring our long-term success as a quality fuel retailer - for which Refining NZ is an important component."

Among NZ Refining's other major shareholders, Mobil Oil New Zealand owns 17.2 percent, and Z Energy owns 15.4 percent, according to NZX data.

ends
(BusinessDesk)

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