Fulton Hogan shareholders to buy back Shell's 37%

Fulton Hogan shareholders to buy back Shell's 37%

by Pattrick Smellie

Dec. 16 (BusinessWire) - An almost 30 year partnership between Shell Overseas Investments BV (Shell) and leading New Zealand roading infrastructure company Fulton Hogan Limited will shortly end with confirmation today that Fulton Hogan shareholders have accepted a recommendation to buy back Shell’s 37% shareholding in the company.

Shareholders met in Christchurchm today to vote on the proposal, and a further proposal that Fulton Hogan purchase the 50% it does not already own of Pioneer Road Services, a leading Australian infrastructure contractor.

A joint statement from Shell New Zealand and Fulton Hogan said the progressive buy back of shares will commence on 30 December 2009 and will be completed over the following four and a half years.

“Fulton Hogan is a well-run, New Zealand-owned business that we have enjoyed a very successful business partnership with for nearly 30 years,” said Rob Jager, Country Chair, Shell New Zealand.

“After such a history together, the wishes of the company are important to us. Fulton Hogan indicated to us a strong desire to preserve the fabric of the company, and keep the ownership within the founding family shareholders, employees and business partners without introducing a new shareholder at this time. We have worked constructively with the company to find a solution meeting these requirements,” he added.

The construction group founded in 1933 in Dunedin by Jules Fulton and Bob Hogan will pay $6.19 a share for Shell's 37% stake and the 50% stake in Pioneer.

Shell confirmed also that it is continuing exclusive discussions with the consortium of Infratil Limited and New Zealand Superannuation for the potential sale of the New Zealand downstream business. The decision to sell the New Zealand downstream business follows a comprehensive strategic review of the business and fits with Shell’s drive to simplify its downstream portfolio and concentrate on larger, integrated assets in growth markets.

Disclosure:

(BusinessWire) 20:08:11

© Scoop Media