Apollo and Vale Enter Into Joint Venture Partnership Related to the Vale Oman Distribution Center
Apollo (NYSE: APO) has announced a $600 million investment to acquire a 50% interest in a joint venture entity related to the Vale Oman Distribution Center (VODC) from Vale S.A. The VODC operates a maritime terminal in Sohar, Oman, featuring a deep-water jetty and an iron ore blending and distribution center with a 40 Mtpy capacity. This strategic move allows Apollo to finance critical supply chain infrastructure and provide its clients with access to high-grade securities. The transaction is expected to close in the second half of 2024, subject to regulatory approvals.
Apollo (NYSE: APO) ha annunciato un investimento di 600 milioni di dollari per acquisire una parte del 50% in un'entità di joint venture relativa al Vale Oman Distribution Center (VODC) da Vale S.A. Il VODC gestisce un terminal marittimo a Sohar, Oman, dotato di un molo in acque profonde e di un centro di miscelazione e distribuzione del minerale di ferro con una capacità di 40 Mtpy. Questa mossa strategica consente ad Apollo di finanziare infrastrutture critiche nella catena di approvvigionamento e di fornire ai suoi clienti accesso a titoli di alta qualità. L'operazione dovrebbe concludersi nella seconda metà del 2024, subordinata alle approvazioni normative.
Apollo (NYSE: APO) ha anunciado una inversión de 600 millones de dólares para adquirir un 50% de interés en una entidad de empresa conjunta relacionada con el Vale Oman Distribution Center (VODC) de Vale S.A. El VODC opera un terminal marítimo en Sohar, Omán, que cuenta con un muelle en aguas profundas y un centro de mezcla y distribución de mineral de hierro con una capacidad de 40 Mtpy. Este movimiento estratégico permite a Apollo financiar infraestructura crítica de la cadena de suministro y ofrecer a sus clientes acceso a valores de alta calidad. Se espera que la transacción se cierre en la segunda mitad de 2024, sujeta a las aprobaciones regulatorias.
아폴로(Apollo, NYSE: APO)는 Vale S.A.로부터 Vale Oman Distribution Center(VODC)와 관련된 조인트 벤처의 50% 지분을 인수하기 위해 6억 달러를 투자한다고 발표했습니다. VODC는 오만 소하르에 있는 해양 터미널을 운영하며, 심해 부두와 연간 4000만 톤 처리 능력을 갖춘 철광석 혼합 및 유통 센터를 보유하고 있습니다. 이번 전략적 결정은 아폴로가 공급망 인프라에 필수적인 자금을 마련하고 고객에게 고급 증권에 접근할 수 있게 합니다. 거래는 2024년 하반기에 regulatory 승인에 따라 종료될 것으로 예상됩니다.
Apollo (NYSE: APO) a annoncé un investissement de 600 millions de dollars pour acquérir une participation de 50% dans une entité de coentreprise liée au Vale Oman Distribution Center (VODC) de Vale S.A. Le VODC exploite un terminal maritime à Sohar, Oman, comportant un quai en eaux profondes et un centre de mélange et de distribution de minerai de fer avec une capacité de 40 Mtpy. Ce mouvement stratégique permet à Apollo de financer des infrastructures critiques de la chaîne d'approvisionnement et de fournir à ses clients un accès à des titres de haute qualité. La transaction devrait se conclure dans la deuxième moitié de 2024, sous réserve des approbations réglementaires.
Apollo (NYSE: APO) hat eine Investition in Höhe von 600 Millionen US-Dollar angekündigt, um eine 50% Beteiligung an einem Joint-Venture-Unternehmen, das mit dem Vale Oman Distribution Center (VODC) von Vale S.A. verbunden ist, zu erwerben. Das VODC betreibt ein See-Terminal in Sohar, Oman, das über einen Tiefwasseranleger und ein Zentrum für die Mischung und Verteilung von Eisenbergbau mit einer Kapazität von 40 Mtpy verfügt. Dieser strategische Schritt ermöglicht es Apollo, wesentliche Infrastrukturen der Lieferkette zu finanzieren und seinen Kunden Zugang zu hochwertigen Wertpapieren zu bieten. Der Abschluss der Transaktion wird für die zweite Hälfte des Jahres 2024 erwartet, vorbehaltlich der behördlichen Genehmigungen.
- Apollo is investing $600 million to acquire a 50% stake in a strategic maritime terminal
- The joint venture provides Apollo with access to critical supply chain infrastructure
- The investment diversifies Apollo's portfolio in the commodities sector
- The transaction demonstrates Apollo's ability to provide bespoke capital solutions
- None.
Insights
Apollo's
For Vale, this transaction likely provides capital for debt reduction or reinvestment while maintaining operational control. The deal structure allows Vale to monetize non-core assets without fully divesting. Investors should note the potential for steady, long-term returns from this infrastructure investment, which could provide a hedge against market volatility.
The VODC investment highlights the growing trend of private equity involvement in critical infrastructure. This facility's strategic importance lies in its deep-water jetty and blending capabilities, which are important for efficient iron ore distribution. The
Investors should consider the long-term value proposition of such assets, which often provide stable cash flows and potential for value appreciation. The transaction's structure as a joint venture may also indicate opportunities for future expansion or optimization of the facility, potentially enhancing returns over time.
The VODC's location in Sohar, Oman, is strategically significant. Situated near the Strait of Hormuz, it provides efficient access to key Asian markets, particularly India and China, which are major iron ore consumers. This positioning could offer a competitive advantage in terms of shipping costs and delivery times.
The joint venture structure may enable more flexible operations, potentially allowing for quicker responses to market demands. For investors, this could translate to enhanced profitability and market share. However, it's important to monitor geopolitical risks in the region, as they could impact trade flows and the facility's operations. The expected closure in H2 2024 suggests confidence in navigating regulatory approvals, which is a positive sign for the deal's viability.
NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Apollo (NYSE: APO) today announced a definitive agreement under which Apollo-managed affiliates, funds and other long-term investors will invest
VODC operates a maritime terminal in Sohar, Oman, with a large deep-water jetty and an integrated iron ore blending and distribution center with a nominal capacity of 40 Mtpy. Vale will continue to own
Apollo Partner Jamshid Ehsani said, “We are pleased to provide a bespoke, cost-effective capital solution to an affiliate of one of Latin America’s leading companies, building on the strong momentum of our corporate solutions business. VODC operates at the heart of one of the world’s busiest trade routes and the transaction is another example of Apollo’s ability to finance critical supply chain infrastructure. This investment also further demonstrates our ability to provide our clients with differentiated access to high grade securities.”
The transaction is expected to close in the second half of 2024 and is subject to customary regulatory approvals.
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three investing strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately
Contacts
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
FAQ
What is the value of Apollo's investment in the Vale Oman Distribution Center joint venture?
When is the Apollo-Vale joint venture transaction expected to close?
What is the capacity of the Vale Oman Distribution Center (VODC)?
How does this investment align with Apollo's (APO) business strategy?
