тАв BP to sell 65% stake in Castrol to Stonepeak in $10.1 billion deal
LONDON, United Kingdom тАУ BP announced on Wednesday it has agreed to sell a 65% majority shareholding in its lubricants brand, Castrol, to the investment firm Stonepeak.
The transaction places an enterprise value of $10.1 billion on the Castrol business.
What is new?
BP has reached an agreement to sell a 65% stake in Castrol to Stonepeak following a comprehensive strategic review of the lubricants business. As part of the deal, BP will retain a 35% shareholding in a new joint venture, providing continued exposure to Castrol’s growth plan and the option to realize further value in the future.
Financial Details
The transaction values Castrol at an enterprise value of $10.1 billion, representing an implied multiple of approximately 8.6 times its recent EBITDA. BP expects to receive total net proceeds of around $6.0 billion, which will be entirely used to reduce the company’s net debt. This figure includes approximately $0.8 billion from the pre-payment of future dividend income from BP’s retained stake.
The implied total equity value of Castrol is $8.0 billion. This is calculated after deducting joint venture minority interests of $1.8 billion, a significant portion of which relates to the publicly listed Castrol India Limited, and other debt-like obligations of about $0.3 billion.
Strategic Rationale
The sale is a significant milestone in BP’s strategy to simplify its portfolio and strengthen its balance sheet. The company stated the transaction accelerates the delivery of its reset strategy and advances its plan to focus its downstream operations on its leading integrated businesses.
About this company
BP p.l.c. is a British multinational oil and gas company headquartered in London, England. The company’s operations cover exploration, production, refining, and marketing. Castrol is its global brand of industrial and automotive lubricants, which includes a publicly listed entity in India, Castrol India Limited.
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