14/08/2006
Graham + Sibbald complete Scandinavian portfolio valuation on behalf of Texaco Investment Netherlands & Norsk Hydro ASA
GRAHAM + SIBBALD's specialist Petroleum & Roadside Services Team have just completed an extensive portfolio valuation exercise on behalf of the Chevron Group’s joint venture partnership between Texaco Investment Netherlands Inc & Norsk Hydro ASA, in Scandinavia.
Following the valuation, the U.S.-based Chevron Corp. and Norsk Hydro ASA announced the sale of their joint Hydro Texaco gas station chain to Norway's Reitan Servicehandel group.
Norsk Hydro said it will receive 1 billion kroner (US$161 million, euro126 million) for its 50 percent stake in the 768 gas station chain, which operates under the Hydro Texaco and Uno-X brands in Norway and Denmark.
In a separate statement, Chevron said its Texaco Investments (Netherlands) Inc. subsidiary will also sell its half interest, but did not disclose the price.
Calum Campbell Partner in charge of Graham & Sibbald’s Petroleum & Roadside Services Department said “Our portfolio review included the provision of strategic advice in relation to the value of the portfolio for existing use, together with an appraisal of the latent development value of the property base. When considering a disposal of this nature, it is essential that the Company is aware of the true underlying value of its property assets, for alternative use, which can frequently far exceed the value of the properties for their existing use.”
Norway's family owned Reitan group has 210 7-Eleven stores in Norway, Sweden and Denmark, and the convenience store chains Narvesen in Norway and Pressbyran in Sweden.
Hydro Texaco was formed in 1995 through the merger of the Norwegian oil and light metal's company's Hydro Olje unit in Norway and Denmark with the Chevron-owned company in the same countries.
The sale requires regulatory approval, and should be completed in the fourth quarter of 2006.
The Uno-X chain operates fuel-only automated stations, while the Hydro Texaco stations include convenience stores.
Trondheim-based Reitan Servicehandel managing director Magnus Reitan said his group will begin by converting about 100 of the Norsk Hydro stores to 7-Eleven stores. He said they will continue to sell fuel under the Norsk Hydro YX logo.
"The 7-Eleven concept will give motorists something new, including a more varied selection of fast food," said Retain.
The Reitan group will take over as employer of the all 346 Hydro Texaco staff in Norway and Denmark.
