PERTH (miningweekly.com) – Energy infrastructure business APA Group has received a near A$13-billion takeover offer from a consortium led by CK Infrastructure Holdings.
The indicative and non-binding proposal was offering APA shareholders A$11 in cash for each stapled security, and permitted a distribution of no more than 24c per stapled security, for the six months to June.
The consortium, which also includes CK Asset Holdings and Power Asset Holdings, has revealed plans to divest APA’s interest in the Goldfields Gas Pipeline, Parmelia Gas Pipeline, Mondarra Gas Storage Facility and a standalone management team. However, the proposal is not conditional on these proposed divestments occurring before completion of the transaction.
The agreement was subject to the completion of a due diligence, Foreign Investment Review Board and Australian Competition and Consumer Commission approval, and majority shareholder approval from both APA shareholders and CK Asset shareholders.
APA told shareholders that based on the indicative price of A$11 per stapled security, the board has granted the consortium access to undertake a due diligence on a non-exclusive basis.
APA operates some 15 000 km of natural gas pipelines that connect sources of supply to markets across Australia. APA also owns and operates a number of gas storage facilities and power stations.