During February 2022, VPEG5’s Investment Committee approved a $1 million co-investment alongside Allegro Fund IV into Gull New Zealand.
Established in 1998, Gull is a leading New Zealand independent fuel distributor and retailer with a network of 112 primarily unmanned fuel stations and a 91ML fuel import Terminal in Mount Maunganui. On 14 March 2022, Ampol Limited (ASX:ALD) released a market statement notifying shareholders of the agreement of the sale of its Gull Business to Allegro Funds Pty Ltd. Key points of the transaction include;
- Ampol has entered into a binding agreement with Allegro Funds Pty Ltd (Allegro) through a transaction vehicle entity for the sale of its Gull business in New Zealand (Gull)
- The offer price represents an enterprise value of NZ$572 million which will result in the realisation of net cash proceeds of approximately NZ$509 million
- The transaction is subject to conditions, comprising New Zealand Commerce Commission (NZCC) approving Allegro as the purchaser of Gull, Overseas Investment Office (OIO) approval and Ampol successfully completing the acquisition of Z Energy Limited (Z Energy)
- Ampol’s acquisition of Z Energy is still subject to NZCC clearance, OIO approval and the Z Energy shareholder vote
Under the terms of the sale, Allegro will acquire 100% of Gull for net cash proceeds of approximately NZ$509 million as well as the assumption by Allegro of approximately $63 million of leases and debt like items. Under the sale 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.
Gull is a much-loved brand by Kiwi motorists and is known for its low-cost fuel offering and customer first focus. Under Allegro ownership, management intend to invest in Gull’s growth and maintain its commitment to best value fuel, underpinning what’s known in NZ as the “Gull effect” – the localised price drop trend which occurs across competitors following Gull’s introduction into a new geographic location.