Apollo Global Management (NYSE:APO) finalized a $1B agreement with BP (NYSE:BP) to finance its investment in the Trans Adriatic natural gas pipeline.
The deal, announced on Monday, positions Apollo (APO) as a non-controlling shareholder in BP Pipelines TAP Limited, a BP (BP) subsidiary that holds a 20% stake in Trans Adriatic Pipeline AG.
The proceeds from the transaction will contribute to BP’s (BP) 2024 divestment and other proceeds target of $2B-3B, part of the company’s disciplined financial frame.
The transaction is expected to close in Q4.
The agreement “will provide our investors with long-term exposure to an industry-leading infrastructure asset with a stable cash flow profile, while allowing bp to meet its objectives of retaining control and executing on its capital efficiency strategy.” commented Skardon Baker, Apollo Partner.
Shares of BP (BP) gained 0.88% to $32.12 on Monday during pre-market trade.