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.
AdvertisementAdvertise with NZME.
"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.