Dow Inc. (NYSE:DOW) shares are trading lower premarket on Tuesday following the company’s disclosure that Macquarie Asset Management's unlisted infrastructure fund, Macquarie Infrastructure Partners VI (MIP VI), has exercised its previously disclosed option to purchase an additional 9% equity stake in select U.S. Gulf Coast infrastructure assets.
The move increases MIP VI's total ownership in Diamond Infrastructure Solutions to 49%.
Read: Dow Analysts Slash Their Forecasts After Weak Q2 Results
With the deal, Dow will receive total cash proceeds of about $3.0 billion, which includes $2.4 billion from the initial 40% equity stake.
In May, Dow finalized the sale of a 40% equity stake in Diamond Infrastructure Solutions to Macquarie Asset Management for $2.4 billion in initial cash proceeds. At the time, Macquarie Asset Management retained the option to raise its stake to 49% within six months of closing.
Diamond Infrastructure Solutions combines Dow's operational expertise with Macquarie Asset Management's infrastructure and energy knowledge to drive growth by granting third-party customers access to Dow's U.S. Gulf Coast sites.
Ben Way, Global Head of Macquarie Asset Management, said, “In the four months since the joint venture between MAM and Dow was established, Diamond has established itself as an independent company focused on delivering world-class infrastructure services and has already attracted a number of new unaffiliated customers.”
Price Action: DOW shares are down 1.54% at $24.25 premarket at last check on Tuesday.
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