Viva Energy shares drop after Vitol confirms stake sale
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More news: Shares in Viva Energy are down 2.7% to $2.85 in early trading on the ASX after commodities trading giant Vitol confirmed it had sold a 16% stake in the fuel refiner and retailer but would remain the company's top shareholder. Viva shares had already tumbled more than 7% on Tuesday on news of the likely deal.
Vitol sells $714m worth of shares in Viva Energy
The news: Commodities trading giant Vitol has agreed to sell $714 million worth of shares — or more than a third of its stake — in fuel refiner and retailer Viva Energy.
The numbers: Vitol said it had entered into a block trade agreement with two financial institutions to sell 248.6 million shares or 16.1% in Viva Energy. The deal is set to be completed at $2.87 a share, a 9% discount to Viva’s closing price on Monday, the Australian Financial Review reported. Viva shares slid 7.2% to $2.93 on Tuesday on news of the likely deal.
The context: Despite the selldown, Vitol said it would remain Viva Energy’s largest shareholder with a 30% stake. The energy trader acquired Viva in 2014 after buying out Royal Dutch Shell’s downstream operations before listing it on the ASX in 2018. Viva operates a refinery in Geelong and retails fuel products via the Shell brand. It acquired the network of Coles Express petrol stations last year and is also set to complete a $1.15 billion acquisition of the On The Run convenience store chain.
The sources: ASX announcement, AFR
