APA Group rallies after agreeing to sell GDI stake to Stonepeak
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More news: APA Group shares climbed at midday after the company agreed with US investment firm Stonepeak to sell the remaining 20% stake in GDI for $64 million, as part of a broader transaction under which Stonepeak will acquire 100% of GDI.
APA Group shares rose 2.63% to $9.38 as of 12:44pm AEDT.
APA to sell 20% stake in Allgas network to Stonepeak for $64m
The news: Energy infrastructure company APA Group has agreed to sell its remaining 20% stake in GDI, which owns the Allgas gas distribution network, to US investment firm Stonepeak for an estimated $64 million.
The numbers: The divestment forms part of a broader transaction which will see 100% of GDI being sold to Stonepeak. APA will continue to provide corporate services to GDI, including to the Allgas Network, for up to three years.
The context: APA said earnings from the divested entities — including gas distribution assets in south east Queensland and northern New South Wales — represented less than 1% of the company's underlying earnings in FY25.
The transaction is expected to complete by the end of the first quarter of 2026.
What they said: "This transaction will further simplify our business as we focus on reducing costs and progressing the significant growth opportunities ahead," said APA's CEO and managing director Adam Watson.
"This announcement follows the recent divestment of our networks business which now sees APA no longer owning non-core gas distribution assets in Australia."
The source: ASX
