New Zealand's Z Energy recommends shareholder vote for Ampol takeover bid

(Reuters) – New Zealand fuel supplier Z Energy said on Monday that it recommended its shareholders to vote in favor of Ampol Ltd’s NZ$1.97 billion takeover bid.

“Board has been focussed on the best interest of Z shareholders and has engaged constructively with Ampol over several months to secure additional value beyond the initial approach in June,” Z Energy chairman Abby Foote said.

Z Energy added it was satisfied that Ampol would continue to invest in New Zealand’s energy transition towards a low carbon future and its scale will deliver advantages for the fuel industry in the country.

“Z will be able to tap into Ampol’s significant supply chain, including trading and shipping operations, that will deliver scale benefits to Z”, Z Energy chief executive officer Mike Bennetts added.

Z Energy, in August, had said it would open its books to Ampol after the NZ$3.78 per share buyout offer, which followed three previous approaches that were not publicly disclosed.

Z Energy was formed when Infratil Ltd and a local pension fund bought Royal Dutch Shell’s downstream business in the country in 2010. In 2016, the company expanded further by buying Chevron’s local assets.

($1 = 1.4453 New Zealand dollars)

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