English
Français
Deutsch
Italiano
Русский
Español
Investing.com — Shares in Apollo Global Management (NYSE:) were higher in premarket US trading on Monday after the asset manager and BP (NYSE:) announced a $1 billion deal to fund the British energy giant’s stake in the Trans Adriatic pipeline.
In an announcement on Monday, the companies said that Apollo would purchase a non-controlling stake in a BP subsidiary that holds a 20% share in Trans Adriatic Pipeline AG.
“Importantly, while bringing in a new investor, this does not diminish bp’s role in a strategic asset for our Azerbaijan gas business,” said William Lin, Executive Vice President of gas and low carbon energy at BP, in a statement.
Trans Adriatic Pipeline AG is the owner and operator of the final 880-kilometer leg of the Southern Gas Corridor pipeline system which transports natural gas from a BP-operated gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe like Greece and Italy. Azerbaijan’s state energy firm SOCAR, Belgium-based Fluxys, Enagas in Spain, and Italy’s Snam also hold 20% interests in pipeline, according to Reuters.
Proceeds from the transaction are due to contribute to BP’s 2024 divestment and other proceeds target of $2 billion to $3 billion. The deal is expected to close in the fourth quarter of this year, subject to required regulatory and partner approvals.
Apollo and BP said they will look to establish additional investment opportunities, including “potential co-operation in both gas and low carbon energy assets, and infrastructure.”
“Together, we see more potential opportunities, as we look to leverage Apollo’s long-term capital and sustainability [and] infrastructure investment expertise to partner with bp on its strategic plans, including energy transition opportunities,” said Apollo Partner Leslie Mapondera in a statement.
Shares in BP (LON:) were hovering just above the flatline in early afternoon trading in London.
Reuters contributed to this report.
Read the full article here
