BP PLC (BP.LN) said Monday that it has begun the previously flagged spin-off of a U.S. subsidiary, raising up to $892.5 million.
The oil company said BP Midstream Partners LP is launching a public offer of up to 42.5 million common units, at an anticipated price of between $19 and $21 each.
The units will be listed on the New York Stock Exchange and represent a 41% limited partner interest in the subsidiary, which owns a portion of BP’s pipelines.
BP said it will retain the remaining limited partner interests in Midstream Partners, as well as general partner and incentive distribution rights.
The company originally said it was considering the spin-off in July.
Shares in BP closed up 0.70 pence at 491.50 pence on Monday.