APA Group agrees to divest networks business for $47m
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The news: Energy infrastructure company APA Group has entered an agreement to divest its networks business to Australia Gas Infrastructure Group for an expected $47 million.
The numbers: APA shares were down 1.3% to $8.47 at 1:15pm AEST, however the stock is up 21.5% since the start of 2025.
The context: Through its networks business, APA currently provides asset management and operating services to third-party owned gas distribution assets.
As part of the transaction, APA will divest its Allgas energy distribution business, which provides asset management and operating services to its parent company GDI. APA will retain a 20% ownership in GDI.
APA will also divest the Tamworth gas distribution network, it said.
Earnings from the divested entities currently represent less than 2% of APA's underlying annual earnings.
APA said around 725 of its employees will transfer with the move, which is expected to complete in the second quarter of FY26.
APA's chief executive and managing director Adam Watson said the divestment reflects APA's focus on reviewing its portfolio to identify opportunities to simplify the business and pursue a customer-focused growth strategy.
What they said: "This announcement will allow APA to focus on its strategy to grow as an owner-operator of energy infrastructure," Watson said.
"It aligns with our ongoing work to simplify the business, become more cost efficient and to prioritise the significant growth opportunities ahead."
The source: ASX
