BP has agreed to sell a 65% stake in its Castrol lubricants business to infrastructure investor Stonepeak at an enterprise value of about $10 billion, as the energy major presses ahead with
BP has agreed to sell a 65% stake in its Castrol lubricants business to infrastructure investor Stonepeak at an enterprise value of about $10 billion, as the energy major presses ahead with its divestment program and balance sheet repair.
The transaction is expected to generate net proceeds of around $6 billion for BP, including accelerated dividend payments, with all proceeds earmarked for reducing net debt.
Under the deal, BP will retain a 35% stake in Castrol through a newly incorporated joint venture alongside Stonepeak. The retained stake will give BP exposure to Castrol’s future growth, with the option to sell the holding after a two-year lock-up period.
Following completion, Stonepeak will own 65% of the joint venture, with BP holding the remaining 35%. The transaction values Castrol at $10.1 billion on an enterprise basis, implying an EV to last-twelve-months EBITDA multiple of about 8.6 times.
“The transaction allows us to realize value for our shareholders, generating significant proceeds while continuing to benefit from Castrol’s strong growth momentum. And with this, we have now completed or announced over half of our targeted $20 billion divestment program, with proceeds to significantly strengthen bp’s balance sheet.
“The sale marks an important milestone in
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