Gull to be sold to Aussie equity firm as push for Z takeover ramps up

Gull is set to be owned Australian equity firm Allegro Funds.

The sale, which is pending Commerce Commission approval, is said to be worth $572 million.

Gull’s ex-owners Ampol says the sale will give them a leg-up in their $2 billion bid to takeover Z Energy by easing competition.

Ampol will use the additional cash from the sale to fund their Z Energy takeover.

It’s unlikely the sale will immediately affect the price of Gull’s fuel; besides the current price surge every New Zealand fuel company is experiencing.

Gull is often one of New Zealand’s cheapest fuel companies, mainly due to its unmanned pumps and importing fuel from one local source.

“We will aim to keep prices low, keep oil giants honest and, unlike the big guys, we will just keep things simple,” Gull’s general manager David Bodger said.

Ampol will continue supplying Gull’s fuel for the next five years.

The sale is also conditional on Ampol successfully taking over Z.

“The sale of Gull is an important step for the clearance of the Ampol and Z Energy scheme of arrangement,” Z Energy said.

In an earlier statement, Z encouraged shareholders to vote in favour of Ampol’s takeover bid.

“Z will be able to tap into Ampol’s significant supply chain, including trading and shipping operations, that will deliver scale benefits,” chief executive Mike Bennetts said

Ampol’s latest bid was $3.83 per share. Previous bids of $3.35 and $3.60 a share were rejected.

Gull has been operational since 1998 and has over 100 stations across New Zealand.

It is the country’s third-largest fuel retailer with an 8 per cent market share.