Apollo may exit Parallel Petroleum to Korea’s Samsung C&T
Apollo Global Management could be on course to exit Parallel Petroleum after South Korean trading firm Samsung C&T said it was interested in purchasing the US asset. The deal is slated to be worth about KRW1 trillion ($919.6 million), Reuters reported, citing local media. Apollo bought Parallel for about $483 million in 2009.
"We are actively pursuing oil, natural gas and mineral resource business ... and reviewing various resource deals across the globe but no final decision has been made on Parallel Petroleum," Samsung C&T said in a statement released Monday.
The company confirmed that it had hired JPMorgan to advise it on overseas resource deals.
Texas-based Parallel develops and invests in "long-lived" oil and natural gas fields in West Texas and New Mexico, including a shale gas project near Forth Worth. Samsung C&T's interest is indicative of a market in which companies are keen to make acquisitions but are being forced to move into new sectors and regions due to the paucity of available top-tier assets.
Apollo had $71.7 billion in assets under management at the end of June, with $40.4 billion in private equity funds, $23.7 billion in capital markets funds and $7.6 billion in real state. It had a further $9.9 billion in uncalled private equity commitments.
A strong performance from Apollo's private equity business saw second-quarter earnings reach $139.6 million, or US$0.31 per share. Carried interest income - the fees earned on profits from assets under management - came to $164.1 million, by far the largest top-line contributor. Carried interest income posted a $54.7 million deficit for the same period of last year.
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