Shares of Viva Energy (VEA) dropped on Tuesday and were on track for their worst day in more than three years after media reports emerged over Swiss-based Vitol's potential stake sale in the Australian fuel retailer.
Shares of Viva were one of the top losers in the benchmark index, falling as much as 7.3% to A$2.93 by 0209 GMT. The stock was poised for its worst day since March 2020, if losses hold.
Vitol, a multinational energy and commodity trading company, was considering trimming its equity interest in Viva through a block trade, the Australian Financial Review reported earlier in the day, without specifying how much the company wants to offload.
The Swiss-headquartered giant currently holds a 46% stake worth around $1.44 billion, according to LSEG data.
Viva did not respond to a Reuters' request for comment. Vitol would tap two investment banks to steer the sell-down, which would see at least A$500 million ($321.30 million) worth of stock offered, according to sources in the AFR report.
"It's yet to be confirmed why Vitol is making such a decision just 5 years after floating their Australian Viva Energy business," said Farhan Badami, analyst at eToro AUS Capital.
"The timing of their decision raises some questions as prices of oil have experienced a notable upswing this month."
Vitol Investment Partnership in 2014 had acquired the downstream operations of Royal Dutch Shell (now known as Shell) in a deal valued at about A$2.9 billion, which it renamed as Viva Energy.
The fuel supplier saw its shares hitting a record high in April after it announced plans to pay A$1.15 billion for On the Run network of stores.
($1 = 1.5562 Australian dollars)
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Shares of Viva Energy (VEA) dropped on Tuesday and were on...
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$3.05 |
Change
-0.030(0.97%) |
Mkt cap ! $4.864B |
Open | High | Low | Value | Volume |
$3.08 | $3.10 | $3.05 | $23.12M | 7.537M |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 8172 | $3.04 |
Sellers (Offers)
Price($) | Vol. | No. |
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$3.07 | 6525 | 1 |
View Market Depth
No. | Vol. | Price($) |
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2 | 8172 | 3.040 |
6 | 13220 | 3.030 |
4 | 31361 | 3.020 |
1 | 5170 | 3.010 |
16 | 34585 | 3.000 |
Price($) | Vol. | No. |
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3.100 | 4000 | 1 |
3.110 | 6232 | 1 |
3.120 | 6232 | 1 |
3.130 | 6232 | 1 |
3.140 | 6232 | 2 |
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