The New Zealand Superannuation fund has reduced its stake in Z Energy to 1.5 per cent from around 10 per cent, saying its original investment goals had been successfully achieved.
The super fund said had sold 36.4 million shares in Z Energy in an underwritten block trade at $8.01 per share. The stock closed on Wednesday at $8.19 a share. The fund said it would remain a shareholder in Z Energy, with a residual holding of about 5.8 million shares.
Nigel Gormly, the fund's head of international direct unvestment, said Z Energy had been an "excellent" investment for the Fund, with a gross return to date of about 48 per cent per annum.
Gormly said in a statement the sale reflected the achievement of the fund's original goals for its private-equity style investment in Z Energy.
"We are delighted to have contributed to the establishment of an iconic Kiwi company that all New Zealanders can be proud of," he said.
Over the last six years, Z Energy had grown into a strong, dynamic listed company.
The NZ Super Fund initially invested $209.8 million in purchasing Z Energy, alongside Infratil, in 2010.
The Super Fund has now received $1,094 million in proceeds from the investment. The fund's remaining 1.5 per cent stake is worth $47 million.
The NZ Super Fund's remaining shares in Z Energy will be managed by its internal team, along with external managers Devon Funds Management and Mint Asset Management. The transaction was completed via a fully underwritten block trade by UBS.