SYDNEY — Ampol Ltd. said it has agreed to sell the Gull fuel business in New Zealand to Allegro Funds Pty Ltd. as it seeks regulatory approval for its takeover of Z Energy Ltd.
Ampol said Allegro’s offer represents an enterprise value of 572 million New Zealand dollars (US$389.4 million) for Gull, which has 112 service stations across the South Pacific country and owns the Mount Maunganui fuel-import terminal.
Ampol, which earlier this month ruled out an initial public offering of Gull, said the transaction would lead to net cash proceeds of around NZ$509 million.
“Under the sales arrangement, Ampol has committed to a five-year fuel supply agreement with Gull as requested by Allegro, subject to annual price reviews and termination rights,” Ampol said on Monday in a regulatory filing.
Ampol is awaiting a decision by New Zealand’s competition regulator on its NZ$2 billion takeover of Z Energy Ltd., which could come within days. The Australian company had committed to sell Gull to ease competition concerns arising from the Z Energy deal.