For­eign own­er­ship set for WA pipe­line

Pilbara News - - News - Peter Wil­liams

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.

Picture: Getty Images

Hong Kong bil­lion­aire Li Ka-shing.

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