Ampol Limited (ASX:ALD) to Divest Electricity Businesses, Focus on EV Charging
Strategic Simplification
Ampol Limited is streamlining its Energy Solutions by divesting its retail electricity businesses in Australia and New Zealand to concentrate on electric vehicle charging and renewable fuels.
Divestment Details
In New Zealand, Ampol’s subsidiaries Z Energy Limited and Flick Energy Limited are selling their electricity retailing businesses to Meridian Energy Limited for NZ$70 million. In Australia, Ampol is selling Ampol Energy (Retail) Pty Ltd to AGL Sales Pty Ltd for a nominal sum.
Financial Benefits
The transactions are expected to generate approximately $65 million in pre-tax cash proceeds. Additionally, Group RCOP EBITDA is projected to increase by around $30 million per annum by the end of 2025, alongside a $50 million cost reduction program.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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