PERTH (miningweekly.com) – Federal Treasurer Josh Frydenberg has officially prohibited the CKI Consortium from acquiring ASX-listed infrastructure company APA Group.

The A$11-a-share offer was first flagged in June, with the consortium, which also includes CK Asset Holdings and Power Asset Holdings, revealing plans to divest APA’s interest in the Goldfields Gas Pipeline, Parmelia Gas Pipeline, Mondarra Gas Storage Facility and a standalone management team.

Frydenberg has previously said that the A$13-billion takeover was “contrary to the national interest”, and would result in “undue concentration of foreign ownership” by a single company group in Australia’s most significant gas transmission business.

The treasurer said this week that his decision was not an adverse reflection on CK Group or the individual companies, which were already a substantial investor in Australia’s gas and electricity sectors and a significant provider of infrastructure services that millions of Australians rely upon.

“The Australian government welcomes CK Group’s investments in Australia and its broader contribution to the Australian economy.

“The government remains committed to welcoming foreign investment into Australia. Foreign investment helps support jobs and rising living standards. The foreign investment framework facilitates such investment while giving assurance to the Australian community that the investment is being made in a way that does not compromise Australia’s national interest,” Frydenberg said.

The APA group and the CKI Consortium have agreed to terminate the implementation agreement, with APA on Wednesday reaffirming its 2019 guidance of earnings before interest, taxes, depreciation and amortisation of between A$1.55-billion and A$1.57-billion.

“We believe that APA’s business is robust and resilient, and despite being subject to a takeover offer for almost six months, APA has been able to continue to run the business smoothly and today reconfirms the 2019 guidance metrics as announced in August,” said APA chairperson Michael Fraser.

“With the CKI Consortium proposal not proceeding, the way ahead for APA is very clear, we will continue to work on APA’s Plan A, which is the successful growth strategy that we have employed for almost two decades.”

MD Mick McCormack told shareholders that the A$4-billion of future opportunities identified in August this year also remained firmly on the company’s radar, including more than A$2-billion of Australian gas transportation prospects.

“We continue to see more growth, in the order of A$300-million to A$400-million capital expenditure per annum, from 2020”

For the 2019 financial year, growth capital expenditure is expected to be around A$425-million.