(Reuters) – New Zealand fuel supplier Z Energy said on Monday that it recommended its shareholders to vote in favor of Ampol Ltd\u2019s NZ$1.97 billion takeover bid.<\/p>\n
\u201cBoard 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,\u201d Z Energy chairman Abby Foote said.<\/p>\n
Z Energy added it was satisfied that Ampol would continue to invest in New Zealand\u2019s energy transition towards a low carbon future and its scale will deliver advantages for the fuel industry in the country.<\/p>\n
\u201cZ will be able to tap into Ampol\u2019s significant supply chain, including trading and shipping operations, that will deliver scale benefits to Z\u201d, Z Energy chief executive officer Mike Bennetts added.<\/p>\n
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.<\/p>\n
Z Energy was formed when Infratil Ltd and a local pension fund bought Royal Dutch Shell\u2019s downstream business in the country in 2010. In 2016, the company expanded further by buying Chevron\u2019s local assets.<\/p>\n
($1 = 1.4453 New Zealand dollars)<\/p>\n