BUSINESS Takeover in the pipeline
SHARES in APA Group have soared after the Australian infrastructure giant received a $ 13 billion takeover proposal from a Chinese consortium led by global infrastructure player CK Infrastructure Holdings.
APA shares gained 21 per cent yesterday, hitting an alltime high of $ 10.01 by 1515 AEST, up $ 1.74.
The CKI- led consortium is offering $ 11 in cash for each APA stapled security – a 33 per cent premium to the APA’s $ 8.27 closing price on Tuesday.
APA, which is one of Australia’s 50 biggest listed com- HK group moves on Australian infrastructure firm panies, has opened its books livering strong results and onpossible gas infrastructure difor the consortium to conduct going growth, irrespective of vestments if a deal eventuates. due diligence. whether the proposal proceeds The proposed divestments
APA’s assets include gas to an offer,” Mr Fraser said. would include APA’s interests pipelines and storage, wind The CKI- led proposal inin the Goldfields and Parmelia farms and the Darling Downs cludes the divestment of several gas pipelines and the Mondarsolar farm. The company opergas assets to allay any concerns ra gas storage facility, all in ates 15,000km of natural gas by the competition watchdog. Western Australia. pipelines across mainland AusA takeover would also be CK Infrastructure Holdings tralia, delivering half of Aussubject to Foreign Investment – controlled by Hong Kong tytralia’s natural gas usage. Review Board ( FIRB) consent. coon Li Ka Shing and formerly
APA chairman Michael The consortium has already known as Cheung Kong InfraFraser said the APA board had had talks with the FIRB and the structure – has investments in made no recommendation on Australian Competition and energy, transport, water, waste the Chinese consortium’s pro- Consumer Commission about management, waste- to- energy posal at this time but did believe it was in security holders’ interests to engage with the consortium.
“The board believes APA has a very attractive business and is well positioned to continue de- and household infrastructure across Hong Kong, China, the UK, Europe, Australia, New Zealand and North America.
Its current assets in Australia include Australian Gas Networks, Duet Group, and a 51 per cent stake in SA Power Networks.
CKI is listed on the Hong Kong share market and had a market capitalisation of about $ HK180 billion ($ 30.3 billion) in December 2017.
Morningstar senior equities analyst Adrian Atkins said CKI was offering a very attractive price for APA Group.