Ann: PROSPECT: IFT: Z Energy IPO

• Release Date: 25/07/13 15:06
• Summary: PROSPECT: IFT: Z Energy IPO
• Price Sensitive: No
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IFT
25/07/2013 13:06
PROSPECT

REL: 1306 HRS Infratil Limited

PROSPECT: IFT: Z Energy IPO

Z Energy shareholders, Infratil and NZSF Aotea Limited (for the New Zealand
Superannuation Fund), have confirmed plans to list up to 50%-60% of the
company in August on the New Zealand and Australian stock exchanges.

Z Energy's offer document was registered by the Registrar of Financial
Service Providers today.

Infratil CEO Marko Bogoievski said Z Energy had strong cash flows, a good
dividend outlook and had identified a range of potential future growth areas,
including new retail service stations, customer offers and enhancements to
Z's terminal infrastructure.

"This listing is an opportunity for investors to take a stake in a major
infrastructure and retailing company that plays a significant role in keeping
New Zealand's economy moving," said Mr Bogoievski.

Mr Bogoievski said "Z Energy has been a very good investment for Infratil and
while an Initial Public Offering will see us reducing our holding we will
still have a significant investment after the proposed IPO."

New Zealand Superannuation Fund spokesperson Stewart Brooks said Z Energy had
an experienced and capable management team. "Over the last three years, Z has
responded well to increased capital investment, successfully re-branding and
placing a strong focus on customer service.

"As a result, Z has increased in value and now represents a significantly
larger proportion of the Fund than it did when we purchased it in 2010.
Reducing our stake via a partial listing will help diversify the Fund's
investment portfolio, as well as adding depth to New Zealand's capital
markets."

Z will be New Zealand's first listed transport fuels company and is expected
to be among the largest 20 New Zealand companies on the NZX main board.

Mr Brooks said it was very important that people considering buying shares in
Z Energy read the offer document. "The offer document contains detailed
information on the key features of the company, the market in which it
operates, its growth opportunities and risks."

At the given price indication of between $3.25 and $3.75 per share, the
listing will raise between $650m-$900m.
Mr Brooks said the funds raised would be re-invested by the NZ Super Fund in
other investment opportunities in New Zealand and internationally.

Z Energy was purchased by Infratil and the Fund from global energy company
Shell in 2010, with each party taking a 50% share.

As outlined in the offer document, the remaining shares held by Infratil and
the Fund will be locked in until after the release of Z's results for the
half year to 30 September 2014.
Copies of the offer document can be obtained through a broker or downloaded
at www.z.co.nz/investor-centre.

Governance changes
Marko Bogoievski also confirmed changes to the governance of the company as
it prepares for a possible partial initial public offer.

Marko Bogoievski will remain as a director and the role of Chair will
transition to Independent Director Peter Griffiths.
"Peter Griffiths is a highly respected and experienced director who has been
on the Z board since the acquisition from Shell. He has a strong background
in this industry and in Z Energy."

Peter Griffiths is a veteran of the downstream fuels industry whose track
record includes a decade as Managing Director of BP New Zealand Ltd as well
as governance and senior management roles in that company's regional
operations.  Mr Griffiths has also served on the boards of the New Zealand
Refining Company, Liquigas and Bitumix. He is a director of Northland Port
Corporation, New Zealand Oil and Gas, Wanganui Gas and New Zealand Diving and
Salvage.

"We are currently working towards an August initial public offering and need
to ensure Z Energy's governance is appropriate to facilitate this
transition," he said.

Following the changes, the remaining Board members will include Paul Fowler
and Al Dunn who were nominated by the NZSF Aotea Limited (on behalf of New
Zealand Superannuation Fund); Lib Petagna and Marko Bogoievski who were
nominated by Infratil; and Independent Directors Justine Munro and Abby Foote
who were appointed to the Z Board as Independent Directors in May this year.
End CA:00238968 For:IFT    Type:PROSPECT   Time:2013-07-25 13:06:59