Dow announced today that it has “entered into a definitive agreement to sell a 40% equity stake in select U.S. Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management”, according to a company press release.
“Today’s announcement demonstrates Dow’s ongoing commitment to value maximizing actions across our portfolio,” said Jim Fitterling, CEO and Chair of Dow. “This transaction further strengthens our financial flexibility and enables continued cash deployment towards the most attractive opportunities that will create long-term value for our stakeholders. We are confident that Macquarie is the right industrially minded partner due to our shared values to ensure the ongoing safe and reliable operations of these assets to support Dow and industrial customers across the U.S. Gulf Coast.”
Dow shares rose approximately 5% to $44.14 in premarket trading today, following the announcement that the company could receive up to $3 billion in cash if Macquarie chooses to increase its equity share to 49% within six months of finalizing the deal.
“As a long-term owner of essential infrastructure, we recognize the value that can be unlocked through the development of infrastructure platforms like Diamond Infrastructure Solutions,” said Ben Way, Global Head of Macquarie Asset Management. “We believe that our significant infrastructure experience and capabilities, coupled with Dow’s operational excellence, will deliver additional efficiencies and long-term growth.”
The new partnership, Diamond Infrastructure Solutions, will serve as an infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana, according to a company statement.
By CEO NA Editorial Staff
