Apollo sells Parallel Petroleum to South Korean trade buyers
New York-based Apollo Global Management has reportedly sold its US oil and gas company Parallel Petroleum to two South Korean trade buyers for $780 million.
The private equity firm had been in talks with South Korea's Samsung C&T and state-run oil firm Korea National Oil Corp (KNOC) for months prior to agreeing the sale. Previous media reports suggested the deal could reach $919.6 million.
Samsung acquired 90% of Parellel and plans to court financial backers for future investments. KNOC, meanwhile, holds the remaining 10%.
Parallel currently operates eight oil- and two gas-producing fields in Texas and New Mexico. It produces around 8,400 barrels of oil and gas per day and has about 69 million barrels in reserves. Apollo bought the company was in 2009 for approximately $483 million.
Corporate finance adviser Scotia Capital supported Parallel on the deal, while JP Morgan advised Samsung C&T.
Samsung C&T said in August that it was actively pursuing oil, natural gas and other mineral resource deals across the globe. Its 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.
Samsung C&T the most recent Asian trade player to have struck a deal in US oil sector this month. Japan's Itochu Corp put its name to a KKR-led consortium which agreed to buy Samson Investment Co. for $7.2 billion last week.
US private-equity firm Crestview Partners and energy investor Natural Gas Partners are also participating in the buyout of one of America's largest oil and gas exploration groups.
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