Caltex Australia (ASX:CTX) intends to undertake an initial public offering (IPO) up to a 49 per cent interest in 250 core Convenience Retail freehold sites.
They propose to retain a majority interest in the freehold sites, which would be placed into a property trust, and enter into a long-term lease agreement over each site.
If implemented, the proposed IPO is expected to realise significant value for Caltex shareholders, allowing Caltex to maintain operational control of the company's core Convenience Retail network.
It is anticipated that the property trust will receive rental payments from Caltex of approximately $80 million to $100 million in the first year.
In a trading update for Caltex, convenience Retail EBIT is expected to be in the range of $190 - 210 million, representing an increase of $20 - 40 million over the first half of 2019, driven by an improvement in fuel margin
Shares in Caltex Australia (ASX:CTX) are trading 5.89 per cent higher at $29.49