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Brookfield Business, Macquarie To Sell Quadrant Energy To Santos For $2.15 Bln

Brookfield Business Partners L.P (BBU), a business services and industrials company, and Macquarie Capital, together with their institutional partners announced an agreement to sell Quadrant Energy to Santos Limited (STOSF.PK,SSLTY.PK,STO.AX) for $2.15 billion.

The sale is subject to certain consents and approvals including from the Australian Competition and Consumer Commission and is expected to settle in the fourth quarter of calendar year 2018.

The agreement also includes a contingent payment in relation to the recent significant Dorado-1 oil discovery and a royalty over all other future hydrocarbons produced in Quadrant's Bedout Basin tenements. This ensures that Brookfield and Macquarie maintain exposure to the upside in these exploration interests.

Following the Dorado-1 oil discovery and given the financial strength of the business, Brookfield and Macquarie determined it to be the appropriate time to transition Quadrant to a long term owner that is suitably equipped to take it through the next phase of development.

Quadrant Energy is currently held by Brookfield Business Partners and its institutional partners of 48.3% stake, and Macquarie Capital of 21.8%, among others.

Clayton Utz is the lead legal adviser to Brookfield and Macquarie on the transaction.

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