10/13 16:35
Sources said that Saudi Aramco is in talks with BlackRock and other investors about a planned deal worth more than 10 billion dollars to sell a stake in its pipeline business.
One of the two sources familiar with the matter said the deal was still in its early stages and that there was no official decision yet regarding the investors.
The process will be modeled on similar infrastructure deals signed this year and last year by the Abu Dhabi National Oil Company (ADNOC). These deals generated billions of dollars by leasing oil and gas pipeline assets to partner investors.
The deal will provide liquidity to Aramco at a time when oil prices are falling due to the Corona virus crisis, and the company also faces a $ 75 billion distribution that it pledged to pay investors during its initial public offering last year.
The first source said, on condition of anonymity due to the confidentiality of the talks, “The work is not over yet .. There are no final buyers, but there are talks.”
The source explained that talks are continuing regarding the type of financing that investors want to secure to support the acquisition deal, adding that this may include a syndicated loan or the issuance of bonds linked to asset income.
Another source familiar with the matter said Brookfield Asset Management was also participating in the discussions.
Aramco did not immediately respond to a request for comment, and BlackRock and Brookfield declined to comment.
Sources had told Reuters earlier that it had been decided to seek the assistance of “JP Morgan” and “Mitsubishi UFJ” of Japan to advise the company regarding the deal.
And “BlackRock” is the largest asset manager in the world, and last year, together with “KKR & Co.”, it bought 40 percent of ADNOC oil pipelines for $ 4 billion.
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