BP halves stake in New Zealand's only oil refinery

WELLINGTON (Reuters) -- BP Plc on Friday said it had sold around half its roughly 20% stake in New Zealand Refining Company Limited for $56.2 million as part of a global portfolio review.

Photo Courtesy of Reuters.
Photo Courtesy of Reuters.

BP was the largest shareholder in New Zealand's only oil refiner before it sold the stock in block trade on Thursday night at NZ$2.32 per share, stock exchange filings show, below Thursday's closing price of NZ$2.49.

Shares in the company, which had been in a trading halt due to the transaction, fell 4% to NZ$2.39 when they resumed trading on Friday afternoon.

New Zealand's benchmark S&P/NZX 50 index was up 0.2% on the day.

"BP regularly undertakes reviews of its assets, partnerships and shareholdings around the world and today's transaction is the outcome of one such global portfolio review," BP's head of Asia-Pacific fuels Andy Holmes said in a statement.

BP did not disclose the buyer of the stake, but said in a statement that it had retained an 10.1% interest in the company, via local subsidiaries.

"BP's reduction in shareholding does not affect the existing contractual arrangements between Refining NZ and BP, including the processing agreement," New Zealand Refining said in a statement.

ExxonMobil Corp, via a subsidiary, and New Zealand's Z Energy Ltd are the other major shareholders in New Zealand Refining.

Reporting by Tom Westbrook; Editing by Richard Lough and Joseph Radford

Related News

From the Archive