Hi again Adam. Some interesting posts today. I imagine you came across information around the evolution of the Viva Energy business.
So far I have put together a lineage for Viva that looks something like this:
1. Shell downstream assets purchased for 2.9Bn Aud
2. Spend around 1Bn Aud improving the business (quoted on Vitol website, but that was going to be over a 5yr period from the purchase in 2014)
3. Purchased Shell Aviation for 250Mn Usd - could be counted in the 1Bn Aud improvement?
Total spend of around 4.3Bn Aud max
From that Vitol created the Viva Reit in a 1.6Bn IPO and Viva Energy in a 4.8Bn IPO, yielding a 6.1Bn total sale. Just checking if I have missed any other acquisitions that have gone into creating the two listed entities.
Since this was floated by a private company I will probably be giving it the 3 year rule* before considering an investment. But obviously as you pointed out the valuation seems attractive - do you think Vitol were unable to extract full value out of this listing?
*This was actually what stopped me from buying LNK in the end despite the promising outlook.
VEA Price at posting:
$2.45 Sentiment: None Disclosure: Not Held
(20min delay)