Ampol has completed its $300m off-market share Buy-Back, with crediting of proceeds to participating shareholders expected to be complete by 1 February.
A total of 11.4 million shares have been bought back with a 14 per cent Buy-Back discount, returning $26.34 per share. All shares bought back by Ampol will be cancelled.
A statement from Ampol said: “Due to strong demand for the Buy-Back, an 89.4 per cent scale back of successful tenders was required. The scale back was structured to minimise eligible registered shareholders with Small Holdings being disadvantaged.
“Subject to exclusions due to any Minimum Price conditions, shareholders who tendered their shares at a 14 per cent discount or as a Final Price Tender will have a Priority Allocation of 190 shares bought back before the scale back is applied. Successful shareholders who tendered all of their shares at a 14 per cent discount or as a Final Price Tender and who would be left with 75 shares or less as a result of the scale back, will have all of their shares bought back in full, in accordance with the process outlined in the Buy-Back Booklet.
“Shares tendered at discounts of 10-13 per cent and tenders conditional upon a Minimum Price above the Buy-Back Price were not bought back.”
Ampol has requested a Class Ruling from the Australian Tax Office in relation to the tax implications of the Buy-Back.
In a letter to shareholders ahead of the Buy-Back, Ampol Chairman, Steven Gregg, said: “In 2020 our business performance has been resilient, considering weak economic conditions and the continued impacts of COVID-19 on transport fuels demand.
“We have remained disciplined in delivering our strategy and we continue to focus on improving cost and capital efficiency. Furthermore, this year we have delivered on a key initiative with the announcement of our Convenience Retail property transaction. The success of this transaction and having now received the proceeds underpins our decision to deliver this Buy-Back for shareholders.”
Gregg refers to the sale of a 49 per cent stake in its convenience retail business for $682m to Singaporean sovereign wealth fund GIC GIC.UL and Charter Hall Group.
The deal was in a newly created property trust which would own 203 convenience retail sites throughout Australia. The deal values the entire property trust at $1.4bn.