APA Group (ASX:APA) has announced the execution of a binding agreement to sell its 20% equity stake in GDI, owner of the Allgas gas distribution network, to affiliates of Stonepeak (Australia).
The agreement is part of a broader transaction under which Stonepeak will acquire 100% ownership of GDI. As part of the deal, APA will continue providing corporate services to GDI, including the Allgas Network, for up to three years.
APA’s earnings from the divested entities—derived from gas distribution assets in South East Queensland and Northern New South Wales—accounted for less than 1% of the company’s FY25 Underlying EBITDA.
APA's share of the proceeds from the sale is estimated at $64 million. CEO and Managing Director Adam Watson stated that the divestment aligns with APA's ongoing strategy to simplify its portfolio and focus on customer-driven growth.
Watson noted, "This transaction will further simplify our business as we focus on reducing costs and progressing significant growth opportunities. Following the recent divestment of our Networks business, APA no longer holds non-core gas distribution assets in Australia."
The transaction is expected to be completed by the end of the first quarter of 2026, subject to certain conditions precedent.