Here's why the Ampol (ASX:ALD) share price is struggling today

What's weighing down Ampol shares? We take a look

| More on:
A man looks frustrated with hand on head as he fills up car at a service station.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor Aaron Teboneras 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 Bruce Jackson.

More on Energy Shares

Happy coal miner.
Share Gainers

Up 75% this week, why is this ASX All Ords stock rocketing again today?

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX 300 stock just rocketed 43% on big news!

Investors are piling into this ASX 300 stock on Wednesday. But why?

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant
Energy Shares

4 reasons to buy Santos shares right now

A leading expert forecasts Santos shares and dividends are set to grow. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX 200 stock has rocketed 86% since April?

This sky rocketing ASX 200 stock continues to defy short sellers. But how?

Read more »

A miner in visibility gear and hard hat looks seriously at an iPad device in a field where oil mining equipment is visible in the background.
Energy Shares

4 ASX 200 energy shares making big moves today as OPEC's oil production set to surge

ASX energy shares, including Woodside and Santos, are making big moves today. But not all in the same direction.

Read more »

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Woodside share price charging higher on North West Shelf approval

Woodside has been working more than six years to gain an extension for its North West Shelf gas project.

Read more »

Gas and oil plant with a inspector in the background.
Energy Shares

Does Macquarie rate Origin Energy shares a buy, hold or sell?

The broker has given its verdict on the energy giant. Let's see what it is saying.

Read more »

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

Ord Minnett tips Woodside shares to rise 15%+

Market-beating returns could be on offer from this energy giant.

Read more »