The $1.4bn New Zealand dual-listed fuel distributor Z Energy is believed to be in the cross hairs of at least two suitors, with the company drafting in Goldman Sachs as its defence adviser.
DataRoom understands that the US investment bank is at its side in the event that a suitor outs itself to buy the business, with talk that approaches may have already been made.
It is understood that some of the possibilities being considered are a break-up of the company or a deal with a major energy multinational where it gains the right to sell fuel to Z Energy’s network.
The understanding had been that an offer was only likely to emerge after a shareholder vote about whether to close New Zealand’s only refinery at Marsden Point in Northland.
That happened on Thursday and the outcome is expected to be revealed on Friday.
The refinery is owned by Refining New Zealand, of which 43 per cent is owned by BP, ExxonMobil and Z Energy.
The proposal is for it to be converted into a fuel import terminal.
Shell, Exxon or Chevron have been touted for a Z Energy transaction, while Vitol could also be interested.
Analysts say while Australian-listed rival Ampol (formerly Caltex Australia) could make an acquisition, it would be contrary to its strategy – which focuses on energy and mobility of the future.
It is also worth remembering that Canada’s Couche-Tard and Britain’s EG tried to buy Ampol before the pandemic, although some are sceptical about Z Energy being a focus.
Z Energy is listed in both Australia and New Zealand.
It is a fuel distributor with 208 branded service stations and about 160 truck stops.
It includes some of the former New Zealand assets of Shell and Chevron.
Z Energy competes with BP, ExxonMobil and independent groups such as Gull.
As well as a 15.4 per cent stake in Refining NZ, it owns a 25 per cent stake in Loyalty New Zealand, which runs Flybuys, and has pipelines, terminals and bulk storage terminal infrastructure.
The company ended its 2021 financial year near break-even as the challenges of Covid-19 took their toll.
Infratil listed the business in 2013.
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Lottery listing
Elsewhere, fund managers learned more about the potential Australian listing of Scientific Games’ lotteries division on Thursday through a call hosted by Macquarie Group.
The $3bn-plus business has low single-digit revenue growth, generated mostly from instant scratch and win games rather than draw games like Powerball.
The feedback so far on SG Lotteries is that the business is solid, but questions remain as to why the US group is opting to list the division in Australia.
Another question is whether the operation will suffer long term if people become more digital in their gambling habits instead of buying in store.
The unit generates almost $1bn of annual revenue with 30 per cent revenue margins.
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