-
Droplets of oil fall from a pump - Source: Reuters -
Related
Rumour and speculation over a potential takeover of NZ Refining appear to be driving the company's shares up.
NZ Refining shares closed on Monday up 2% to $7.65 after gaining 5% the week before.
Bloomberg News last week reported that US refiner Valero Energy Corp was considering a stake or a full takeover in the company's Marsden Point refining facility near Whangarei.
Among NZ Refinery's major shareholders, Shell Oil and Mobil, who together own about 36%, have signalled they will divest their downstream assets.
However, NZ Refining CEO Ken Rivers say the company has not been informed of any intentions to sell, and no due diligence has been carried out.
Marsden Point is New Zealand's only oil refinery and processes around 70% of New Zealand's fuel.
For the year to December 1 2008 it reported a net profit of $125 million, up from $112 million in 2007.
"It's always been a bit of a quiet performer, it has performed well over the years, provided good dividend yields to its investors so it would be good to see if a takeover offer, should it arise, get any traction," says market analyst Jennie Moreton.
Other major shareholders in NZ Refining include Chevron and Emerald Capital.
