The Ampol Ltd (ASX: ALD) share price is treading slightly lower during afternoon trade on Thursday. This comes after the fuel retailer announced a potential issue of subordinated notes as well as a property transaction.
At the time of writing, Ampol shares are fetching $30.25 apiece, down 1.27%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is relatively flat at 7,402, edging 0.04% higher.
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Ampol commences bookbuild process
Investors are sending the Ampol share price lower following the company's decision to offload some of its assets.
In its release, Ampol advised it has entered into an arrangement to sell 20 freehold convenience retail sites.
The non-binding heads of agreement will see the transfer of petrol stations to an unlisted property trust. Ampol will own a 51% interest, while Charter Hall will take up the remaining 49% stake.
The deal is expected to deliver Ampol around $48 million in net proceeds, subject to binding commitments.
Once the transaction is completed, Ampol plans to begin leasing the sites under long-term triple net lease arrangements.
In addition, the company confirmed it has commenced a bookbuild process to issue subordinated notes in the wholesale fixed income market.
It intends to use the funds acquired from the sales and notes issue to help fund the purchase of Z Energy Ltd (ASX: ZEL). Furthermore, any monies left over will be allocated to general corporate purposes.
The property transaction is expected to be finalised sometime in the first quarter of 2022.
Ampol share price snapshot
Over the past 12 months, the Ampol share price has fallen by around 3%. Year-to-date, its shares have traversed the other way, up 6% for the period.
Based on today's price, Ampol commands a market capitalisation of roughly $7.19 billion, and has approximately 238.30 million shares outstanding.
