Through Apollo, U.S. And Chinese Consortium Closer To Acquisition Of Aramco 10 Billion U.S. Dollars

JAKARTA - Global investment management company Apollo is said to be leading a share sale agreement of Saudi Arabian oil company Aramco, with a transaction value of USD10 billion or equivalent to Rp145.6 trillion (exchange rate of Rp14,569).

"The consortium from the United States (U.S.) and China is getting closer," said an internal source who did not want to be named as reported by energyvoice.com, Tuesday, April 6.

The decision to give the U.S. and China an opportunity to acquire Aramco is a follow-up to the decision to narrow the wiggle room for Brookfield Asset Management Canada and BlackRock.

However, Apollo's position can still be overtaken by other consortiums given that the final decision on the release of shares has not yet been made.

"The Apollo consortium is currently seen as a leading contender, other bidders could still emerge victorious," the informant said.

For information, Aramco is the world's largest oil company based in Dhahran, Saudi Arabia. The initial release of the company's shares was touted as the momentum of the islamic state's business revolution.

Because, the idea of sharing ownership of the business initiated by Crown Prince Mohammed bin Salman became a milestone in the modernization of the corporate system in Saudi Arabia for the future.

"Aramco may choose a winner in the coming weeks, although it may decide not to sell its shares," he said.

Apollo, Aramco, BlackRock and Brookfield declined to comment when confirmed on the matter.

If a deal is actually reached, then the release of Aramco shares will be one of the biggest infrastructure deals of the year and be one of the largest for Apollo.

The Kingdom in Saudi Arabia itself explained that this strategy became a more open step to foreign investors and used its money to diversify the economy.

The asset release also helped the energy giant maintain payments to shareholders as well as investments in oilfields and refining projects.

Recently, Aramco distributed a $75 billion dividend to shareholders. It was the highest of all the companies listed on the exchange floor.

On the other hand, last year the Abu Dhabi state energy company sold a $10.1 billion stake to six investors including GIP and Brookfield. JPMorgan Chase & Co. and Moelis & Co., the Wall Street investment bank that was also involved in the Abu Dhabi deal, are among Aramco's advisers.