On Monday, it was said by Infratil Ltd. and the New Zealand Superannuation Fund that Shell New Zealand’s distribution and retail businesses have agreed to execute the sale and purchase of the agreement. The business includes 17.1% stake in New Zealand’s Refining Company.

On April 1, i. e., the settlement date, the base purchase price in New Zealand Dollars would be $696.5 million. Net working capital would also be included in excess of $208 million New Zealand Dollars. The company also said that the agreement would remain conditional on funding and regulatory approval.

It was also shared that the amount of equity provided by Infratil and NZ Superannuation would be $420 million New Zealand Dollars. According to Infratil, the market value for stake in NZ Refining is approximately $190 million New Zealand Dollars.

“The businesses being acquired have been built up by Shell over almost a century and their decision to sell due to changes in the global oil market has presented a 'once in a generation' opportunity", said Mr. Bogoievski, Infratil Chief Executive Marko.

Last November, after Shell New Zealand said that it was conducting a review of its downstream business as a part of strategic review, the consortium and Shell NZ entered exclusive negotiations.