Australia's Viva Energy to buy convenience retailer OTR Group for $777 mln (updated)

Waypoint REIT

04/04/2023 23:46

(Adds details on acquisition)
       April 5 (Reuters) - Australian fuel supplier Viva Energy
Group Ltd  VEA.AX  said on Wednesday it will buy convenience
retailer On the Run (OTR Group) from Adelaide-based Peregrine
Corporation for A$1.15 billion ($776.60 million).    
    The acquisition supports Viva Energy's vision to be
Australia's leading convenience retailer, with a pathway to more
than 1,000 stores in the next few years.
    The deal to buy OTR, which has a network of 205 convenience
retail stores, will see Viva Energy become the biggest
non-government employer in South Australia, Viva said.    
    Viva Energy, owner of the Shell service station chain in
Australia, said the deal will be funded via A$1 billion of debt
and working capital, and an A$150 million equity issuance.    
    In September last year, Viva Energy said it plans to buy
convenience stores from Coles Group Ltd  COL.AX , giving it a
bigger store network than arch rival Ampol Ltd  ALD.AX .
    

($1 = 1.4808 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru; Editing by Devika
Syamnath)
 ((Harish.Sridharan@thomsonreuters.com; Twitter: https://twitter.com/damnit_saladin;))