ECM teams eye monster Viva Energy block; fundies on high alert

afr.com:

Commodity trading juggernaut Vitol may be poised to jettison a chunk of its 40.85 per cent stake in ASX-listed fuel retailer and refiner Viva Energy.

Viva Energy CEO Scott Wyatt. Brook Mitchell

Investor sources told Street Talk that Vitol had been entertaining pitches from equity capital markets teams and while a final decision had not been made, was considering trimming its Viva stake via a block trade in the coming days. It owns 633 million shares in Viva, worth about $2 billion.

The Swiss-headquartered giant would tap two investment banks to steer the selldown, which would see at least $500 million worth of stock offered, the sources said.

Bank of America and UBS oversaw Viva Energy’s initial public offering five years ago and are expected to be well-placed to nab the trade should Vitol give the green light.

Vitol and Viva Energy’s history goes back to 2014, when the Vitol Investment Partnership (VIPL) acquired Royal Dutch Shell’s downstream operations for $2.9 billion in 2014 and renamed them Viva Energy.

Viva Energy is one of the country’s biggest fuel companies. It has 24 per cent of the downstream petroleum market, selling fuel and fuel products via the Shell brand in Australia and a refinery in Geelong.

Viva Energy shares last traded at $3.16 and have risen almost 16 per cent this year.