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Petrol giant plans to offload a half stake in 250 service stations

Petrol giant Caltex is planning an initial public offering (IPO) in the first half of 2020 for up to a 49 per cent stake in its fuel and convenience stations.

The oil refiner and petrol retailer will attempt to unlock capital inside their fuel retail network by selling a half stake in 250 of their 500 Australian service stations.

The plan will create a separately listed property trust and allow Caltex to keep operational control of its core convenience retail network.

Managing Director and CEO of Caltex Australia, Julian Segal tells Ross Greenwood the plan will allow them to unlock quite a bit of value and return it back to the shareholders.

“The rent paid by these 250 sites will come to about …$100-million per year.

“The portfolio would be worth… almost as much at $1.8-billion.”

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Image: Getty / Bloomberg