Market punters can rest easy now as the sale of a block stake in Viva Energy (ASX:VEA), Australia's second oil refinery and petrol (Shell) group, has been completed. The Swiss parent company has announced its intention to retain its remaining 30% shareholding "in the short to medium term."
On Tuesday, VEA shares experienced a more than 7% drop, falling to $2.93, as it became clear that the sale was not tied to a potential bid.
The Swiss-based parent company, Vitol Investment Partnership, has confirmed market rumors by selling Viva shares in two parcels to two undisclosed financial institutions, effectively underwriting the sale of 248.6 million Viva shares.
Vitol Investment Partnership has not previously divested any Viva Energy shares since its initial public offering (IPO) over five years ago in July 2018 and currently has no plans to further reduce its shareholding in the short to medium term.
Acquiring Viva Energy in 2014, Vitol Investment Partnership regards it as one of the world's premier downstream companies, skillfully managed by an exceptional team led by CEO Scott Wyatt.
As the world's largest independent energy commodity trading company and an investor in Vitol Investment Partnership, Vitol remains a steadfast partner of Viva Energy, maintaining long-term agreements. Vitol continues to support Viva Energy by ensuring reliable, competitive, high-quality fuel supply, with no changes to the fuel supply agreements between the two companies.
Vitol Investment Partnership confirms that it does not possess any non-public information that could reasonably be expected to materially impact the price or value of Viva Energy's shares, thus concluding its statement.
