Tycoon Li Ka-shing offers $5.4b for Duet
MELBOURNE: Hong Kong billionaire Li Ka-shing’s Cheung Kong Infrastructure Holdings has offered to buy Duet Group at a premium of about 28 per cent in a bid to win control of the Australian infrastructure company’s pipeline assets, according to people familiar with the matter.
The Hong Kong-based company made a conditional offer of A$3 a share for Duet last week, said the people, asking not to be identified as the details are private. The offer values Duet at about A$7.3 billion ($5.4 billion), according to data compiled by Bloomberg. The board of the Australian company plans to consider the offer, the people said. Duet shares closed at A$2.35 in Sydney on Friday.
The bid for Duet would be the latest attempt by Li to bolster his Australian business this year. The tycoon experienced a setback in August when the Australian government blocked CKI and State Grid Corp. of China from buying a majority stake in stateowned power network Ausgrid.
Expanding his business in Australia would also help Li diversify away from the UK, the biggest profit generator for his flagship firm CK Hutchison Holdings, as Britain’s decision to split off from the European Union threatens to undermine the economy.
Wendy Tong Barnes, a spokeswoman for CKI, couldn’t be immediately reached for comment. A spokesman for Duet declined to comment.
Duet’s assets include the Dampier-Bunbury pipeline in Western Australia, a stake in electricity distributor United Energy, gas distribution business Multinet Gas, pipelines business DBP Development Group and Energy Developments, according to the Duet’s website.
The Australian Financial Review had reported earlier about CKI making an offer for Duet. — Bloomberg News