Good interest seen in Shell assets

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Private equity funds are expected to take a healthy interest in Shell's New Zealand asset sell up, The Australian Financial Review reported.

Shell has put its so-called downstream businesses on the block which include 230 petrol stations, aviation and marine fuel, bitumen, chemical, supply and distribution businesses plus a 17 per cent stake in New Zealand Refining and a quarter stake of FlyBuys operator, Loyalty New Zealand.

The AFR reported that Shell's adviser UBS was putting a financing package together for bidders, which would provide clarity about the terms on which a lending syndicate was willing to roll over debt.

Trade buyers were also expected to keep a close eye on the sale, the AFR said, which is yet to formally begin.

Caltex is considered a likely bidder for Shell's New Zealand retailing operations and its 17 per cent stake in New Zealand's only refinery, the New Zealand Refining Company. The AFR reported that this would enable Caltex to raise its share of the New Zealand market by 27 percent and replicate its Australian discount petrol alliance with Woolworths, which has a petrol loyalty relationship in New Zealand with Shell.

The Australian retailer offers customers of its Woolworths, Foodtown and Countdown supermarkets 4 cents a litre off fuel at participating Shell and Gull stations in New Zealand.

- © Fairfax NZ News