Dow (DOW) said Monday that it entered into a definitive agreement to sell a 40% equity stake in certain US Gulf Coast infrastructure assets to a fund managed by Macquarie Asset Management for initial cash proceeds of about $2.4 billion.

Macquarie will have the option to increase its equity share to 49% within six months of closing, potentially increasing Dow's cash proceeds to about $3 billion.

The company said that the new partnership, named Diamond Infrastructure Solutions, will be a specialist infrastructure provider to Dow and other industrial customers at its five locations in Texas and Louisiana.

Dow said it will maintain control as the majority owner of Diamond to ensure safe and reliable operations. The transaction is expected to close in the first half of 2025.

Dow's share price rose 5% in recent premarket activity on Monday.