The NZ Super Fund has sold 36.4 million shares in Z Energy (NZX: ZEL) in an underwritten block trade. The price achieved was NZ$8.01 per share.

The NZ Super Fund will remain a shareholder in Z Energy, with a residual holding of approximately 5.8 million shares within its listed New Zealand equity portfolio.

Nigel Gormly, the NZ Super Fund’s Head of International Direct Investment, said Z Energy had been an excellent investment for the Fund, with a gross return to date of approximately 48% p.a.

Mr Gormly said the sale reflected the achievement of the Fund’s original goals for its private-equity style investment in Z Energy. “We are delighted to have contributed to the establishment of an iconic Kiwi company that all New Zealanders can be proud of. Over the last six years, Z Energy has grown into a strong, dynamic listed company. Our retention of a 1.5% holding in the company reflects our confidence in Z Energy’s management team and staff, who are doing an excellent job.”

The NZ Super Fund initially invested NZ$209.8 million in purchasing Z Energy, alongside Infratil, in 2010. The NZ Super Fund has now received NZ$1,094 million in proceeds from the investment while the value of the Fund’s remaining 1.5% stake is NZ$47 million (at the block trade sale price).

The NZ Super Fund’s remaining shares in Z Energy will be managed by its internal team, along with external managers Devon Funds Management and Mint Asset Management.

The transaction was completed via a fully underwritten block trade by UBS.