Ampol has extended its due diligence of New Zealand fuel distribution and retail company Z Energy by two weeks.
Following the NZ$2bn proposal announcement on 23 August, Ampol has today confirmed the extension of the due diligence period to enable outstanding matters to be addressed and whether key transaction terms and documentation can be agreed.
Z Energy said that there is no certainty that discussions between the two companies will result in an agreement on a transaction and that it will provide an update to the market on or before 11 October.
Ampol has proposed to acquire 100 per cent of the shares of Z Energy, which owns and manages around 330 New Zealand petrol and truck stops, for a cash offer price of NZ$3.78 per share. Shares in Z Energy closed at NZ$3.43 on Friday.
In addition to the Offer Price, Ampol’s Proposal includes a dividend adjustment mechanism which permits Z Energy to pay a dividend equal to NZ 0.055 cents per share per calendar day, for each day that the transaction extends beyond 31 March 2022, up to a limit of NZ 10 cents per share. The proposed transaction is expected to be subject to a number of customary conditions which include a Z Energy shareholder vote and New Zealand Court and regulatory approvals, namely, obtaining a clearance under the New Zealand Commerce Act and Overseas Investment Act.