Australia's APA recommends HK firm CKI's 'compelling' buyout deal (updated)
13/08/2018 24:15
(Adds background on initial offer, details on final
distribution)
Aug 13 (Reuters) - Australia's biggest gas pipeline company
APA Group APA.AX recommended a A$12.98 billion ($9.45
billion) buyout offer on Monday from a consortium led by Hong
Kong's CK Infrastructure (CKI) 1038.HK , in the absence of a
better offer.
The deal, if successful, would make CKI the major player in
Australia's east coast gas pipeline network.
"The offer made by the CKI Consortium is compelling ... the
board unanimously recommends that security holders vote in
favour of the schemes," chairman Michael Fraser said.
APA said due diligence by all parties was complete and, if
the deal goes through, APA shareholders would receive A$11.00
cash per share, which was announced in June. urn:newsml:reuters.com:*:nL4N1TE6D8
The offer is currently at an 11.8 percent premium to APA's
previous close.
CK Infrastructure, leading a consortium with CK Asset
Holdings 1113.HK and Power Assets Holdings 0006.HK , said it
was seeking regulatory approval for the deal.
To avoid competition concerns, CK Infrastructure has offered
to divest all of APA's pipeline assets in Western Australia
because it already owns the major Dampier-to-Bunbury gas
pipeline in that state, acquired in its takeover of DUET.
The competition watchdog said in June, when the deal was
first proposed, it would take about 12 weeks to review the deal
after receiving more information.
APA said the deal would not affect APA’s final distribution
for the 2018 financial year, expected to be 24.0 cents per
stapled security.
($1 = 1.3729 Australian dollars)
(Reporting by Devika Syamnath in Bengaluru
Editing by Susan Thomas and Paul Tait)
((Reuters Messaging:
Devika.Syamnath.thomsonreuters.com@reuters.net))