Hong Kong consortium makes US$9.8 billion bid for Australia’s APA

SYDNEY: A consortium led by Hong Kong’s CK Infrastructure Holdings made an unsolicited A$ 13 billion ( US$ 9.8 billion) bid for gas pipeline company APA Wednesday, with the Australian firm agreeing to open its books.

APA’s assets include gas transmission pipelines and storage, along with wind and solar farms across Australia. The firm’s website said its 15,000 kilometres (9,300 miles) of gas pipelines connect 1.3 million Australian homes and business. The A$11 per share cash offer was a 33 per cent premium to the company’s A$ 8.27 closing price on Tuesday, with the stock soaring 20.92 per cent to finish at A$ 10.00 on Wednesday.

Chairman Michael Fraser said it was in shareholders’ interests to engage further and agreed to allow the Hong Kong powerhouse to undertake due diligence.

“The APA board will continue to evaluate the proposal and will update APA’s security holders and the market as appropriate,” Fraser said in a statement.

All up, APA owns and/or manages and operates a portfolio of assets worth in excess A$ 20 billion. CK Infrastructure chairman Edmond Ip said the proposal was “still at a preliminary stage and ... the transaction may or may not be undertaken”.

Any takeover would be subject to Foreign Investment Review Board approval, with the consortium, comprising CK Infrastructure Holdings, CK Asset Holdings and Power Assets Holdings, saying it had already held preliminary talks with the FIRB.

CK Infrastructure already owns Australian interests including power provider Duet Group and the deal would involve some of APA’s assets being divested to secure clearance from the country’s competition watchdog. — AFP