Scoop has an Ethical Paywall
License needed for work use Register

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Fulton Hogan shareholders to buy back Shell's 37%

Fulton Hogan shareholders to buy back Shell's 37%

by Pattrick Smellie

Dec. 16 (BusinessWire) - An almost 30 year partnership between Shell Overseas Investments BV (Shell) and leading New Zealand roading infrastructure company Fulton Hogan Limited will shortly end with confirmation today that Fulton Hogan shareholders have accepted a recommendation to buy back Shell’s 37% shareholding in the company.

Shareholders met in Christchurchm today to vote on the proposal, and a further proposal that Fulton Hogan purchase the 50% it does not already own of Pioneer Road Services, a leading Australian infrastructure contractor.

A joint statement from Shell New Zealand and Fulton Hogan said the progressive buy back of shares will commence on 30 December 2009 and will be completed over the following four and a half years.

“Fulton Hogan is a well-run, New Zealand-owned business that we have enjoyed a very successful business partnership with for nearly 30 years,” said Rob Jager, Country Chair, Shell New Zealand.

“After such a history together, the wishes of the company are important to us. Fulton Hogan indicated to us a strong desire to preserve the fabric of the company, and keep the ownership within the founding family shareholders, employees and business partners without introducing a new shareholder at this time. We have worked constructively with the company to find a solution meeting these requirements,” he added.

The construction group founded in 1933 in Dunedin by Jules Fulton and Bob Hogan will pay $6.19 a share for Shell's 37% stake and the 50% stake in Pioneer.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Shell confirmed also that it is continuing exclusive discussions with the consortium of Infratil Limited and New Zealand Superannuation for the potential sale of the New Zealand downstream business. The decision to sell the New Zealand downstream business follows a comprehensive strategic review of the business and fits with Shell’s drive to simplify its downstream portfolio and concentrate on larger, integrated assets in growth markets.


Pattrick Smellie is a Fulton Hogan Ltd shareholder.

(BusinessWire) 20:08:11

© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.