Vitol confirms 16pc sale of Viva Energy, calms rattled market
Viva Energy shares have collapsed nearly 10 per cent this week, after Dutch oil trading giant Vitol sold a 16 per cent stake in the Australian company which supplies a quarter of the nation’s fuel.
The share price collapse sparked by Vitol’s block trade, which was revealed by The Australian Financial Review’s Street Talk column on Monday night, triggered the Dutch giant on Wednesday to declare it had faith in Viva management, and no plans for a further sell down. It insisted the sale was not based on inside information.
Viva Energy is one of the country’s biggest fuel companies. James Brickwood
Following the sale to two undisclosed buyers, Vitol Investment Partnership remains the largest shareholder in Viva Energy with approximately a 30 per cent stake, the Dutch firm disclosed in market filings.
“[Vitol] considers Viva Energy to be one of the very best downstream companies in the world, managed by an exceptional team led by CEO Scott Wyatt,” Vitol said the announcement released via Viva Energy on Wednesday.
“Vitol Investment Partnership has not previously sold any Viva Energy shares since its IPO more than 5 years ago in July 2018 and has no intention to further reduce its shareholding in the short to medium term.”
Vitol will continue to supply fuel to Viva with no change to their supply agreement.
Vitol and Viva’s history goes back to 2014, when Vitol acquired Royal Dutch Shell’s downstream operations for $2.9 billion and renamed the asset Viva Energy. It later bought the aviation business and a 50 per cent stake in Liberty Oil, before spinning off a petrol station property real estate investment trust, and floating what was left as Viva Energy in 2018. Vitol has two representatives on Viva’s board.
Viva Energy is one
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