APA Group (ASX:APA) today announces it has completed the divestment of its Networks business, including entities which undertake gas distribution operations and maintenance services.
Today’s completion follows the announcement of an agreement to divest these entities on 19 August 2025. Through these entities APA had provided asset management and operating services to third-party owned gas distribution assets. Asset management and operating services for these gas distribution assets, along with approximately 725 APA employees, have now transitioned out of APA.
APA will provide post-handover services under a Transitional Services Agreement for a period of up to 18 months (unless extended by up to a further six months).
The completion of Tamworth gas distribution network will follow in early 2026, pending final approvals and licence transfer.
CEO and Managing Director, Adam Watson, said the divestment further simplifies APA’s business as it pursues significant growth opportunities ahead.
“We are pleased to have completed this transaction as we continue to simplify our business, reduce costs and focus on delivery of the key growth platforms in place. Services and employees have now transitioned smoothly. We thank our former gas distribution, asset management and operations services employees for their significant contribution to APA.”
APA earnings from the divested entities, derived from fixed-term asset management contracts which are reaching end of term, represented less than 2% of APA’s FY25 Underlying EBITDA. Proceeds from the sale are estimated to be $29 million.1
1 Consideration has been adjusted for the contractual cashflows received from the existing asset management contracts since 30 June 2025. Excludes consideration for Tamworth gas distribution network, working capital and transaction costs. Consideration is subject to adjustment for final working capital.