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Trafigura-Backed Puma Energy Eyes £4bn Float

An oil storage firm backed by the commodities trading house Trafigura is in talks with banks that could lead to a public listing valuing it at more than $6bn (£4.1bn).

Sky News has learnt that Singapore-based Puma Energy, which last year bought the dormant Milford Haven oil refinery in Wales, is lining up advisers to work on a review of its options for raising capital.

A decision about whether to pursue a flotation – which has also been considered in the past – is unlikely to be taken before the autumn, according to energy sector bankers.

However, the news that it is being seriously examined will be viewed as a significant one by followers of Trafigura, which holds a 49% stake in Puma (Swiss: PUM.SW - news) .

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The oil storage and petrol retailer’s second-largest shareholder is Sonangol, Angola’s state oil company, which owns about 30%, with private investors – including many with links to Trafigura – owning the remaining shares.

The talks with investment banks will not necessarily lead to a public listing of Puma’s shares, sources said.

One of the factors dictating Puma’s appetite for going public is likely to be the future of its distribution arrangements with its largest shareholder.

Sources say that an alternative to a listing could be to raise capital by bringing in a strategic investor.

If it does go public, London is likely to be among the locations considered by Puma’s board, with a bumper float potentially putting it on course to enter the FTSE-100.

Trafigura’s most recent disposal of a stake in Puma valued the latter at about $5bn in 2013, with sources indicating that the company is now likely to be worth between $6bn and $7bn.

News (Other OTC: NWSAL - news) of Puma’s discussions with banks comes as commodities trading groups face pressure from regulators to become more transparent about their global activities, although Trafigura has maintained that it has no plans to follow the likes of Glencore (Xetra: A1JAGV - news) by going public.

Puma has a major presence in Africa and Latin America, and is now the biggest independent fuel retailer in Australia.

Last year, it bought the shuttered Milford Haven refinery from Murphy Oil (Stuttgart: MUQ.SG - news) , and said it would make it "a key site securing the supply of energy to the UK and wider region during a period of change in European energy infrastructure".

Puma has since continued to make acquisitions, with the ongoing retreat of oil majors from downstream assets presenting an ongoing opportunity for expansion.

Earlier this month, it reported record first-quarter profits despite what its chief executive referred to as “obvious challenges in the wider market”, including the protracted slump in global oil prices.

Puma also announced that it had secured a new revolving credit facility of $800m from 35 banks, in addition to extending the majority of an existing $750m loan.

Spokesmen for Puma and Trafigura declined to comment on Sunday.