Foreign ownership set for WA pipeline
Foreign ownership of the Dampier-to-Bunbury gas pipeline is looking increasingly likely after the $7.3 billion offer for its parent company was deemed higher than its worth.
An independent expert’s report released yesterday said the bid for Duet Group by Hong Kong billionaire Li Ka-shing’s Cheung Kong Infrastructure was fair and reasonable.
The deal’s main obstacle is approval by the Foreign Investment Review Board.
The pipeline is considered the most politically sensitive asset in Duet’s portfolio of national energy infrastructure.
CKI’s offer for Duet is worth $3.03 a share. The KPMG report valued the stock in a range between $2.32 and $2.77.
“The discount of the traded price to the total cash proceeds reflects, in our view, the market’s assessment of the risk that FIRB does not approve the proposed acquisition,” the report said.
The document also gave the pipeline a value of between $1.26 billion and $1.56 billion.
The asset supplies domestic gas from North West projects to homes and businesses in Perth and the South West.
Federal Treasurer Scott Morrison in August blocked bids by CKI and China State Grid Corporation for electricity network Ausgrid on national security grounds.
Hong Kong billionaire Li Ka-shing.