APA Group (ASX:APA) today announces the execution of a binding agreement to divest its 20% equity ownership in GDI (EII) Pty Ltd (GDI), which owns the Allgas gas distribution network (Allgas Network), to affiliates of Stonepeak (Australia) Pty Ltd (Stonepeak).

This forms part of a broader transaction which sees 100% of GDI being sold to Stonepeak. As part of the transaction, APA will continue to provide corporate services to GDI (including to the Allgas Network) for up to three years.¹

APA’s earnings from the entities to be divested, which is derived from the ownership of gas distribution assets in South East Queensland and Northern New South Wales, represented less than 1% of APA’s FY25 Underlying EBITDA. APA’s share of the proceeds from the sale are estimated to be $64 million.²

CEO and Managing Director, Adam Watson, said the divestment reflects APA’s continued focus on reviewing its portfolio to simplify the business as it continues to deliver its customer-focused growth strategy.

The transaction is expected to complete by the end of the first quarter 2026, subject to satisfaction of certain conditions precedent.

¹ Three year term includes 30 month CSA plus six month transitional period.
² As at 30 June 2025, excluding APA transaction costs. Proceeds subject to adjustments including for completion date, leakage and ticking fees.