Oz APA Accepts $10bn Takeover Bid

Australia’s biggest gas infrastructure company APA Group August 13 said it has accepted the A$13bn ($9.8bn) takeover bid from a consortium led by Hong Kong-based CK Infrastructure Holdings. The takeover offer was first announced in June this year. 

“APA’s board of directors believes the offer to be compelling for APA securityholders given the premium it represents to recent trading, attractive acquisition multiple and certainty of value provided by the 100% cash consideration,” APA chairman Michael Fraser said.

The company said that if the deal goes through APA shareholders will receive A$11.00 cash per share. “Depending on the progress of regulatory approvals, a meeting of APA securityholders is targeted to be held in late November 2018 to consider the schemes, with implementation and payment to APA securityholders targeted to occur in mid-December 2018,” the company said.

APA further stated that if the deal goes through any time after December 31, 2018, APA shareholders will receive an additional distribution of 4 cents per share for each full month in calendar 2019 which elapses prior to implementation of the deal.

The Hong Kong-based firm, in a separate statement, said it is seeking approval from Australian regulators. CK Infrastructure already owns Duet Group, which owns the Dampier to Bunbury gas pipeline in Western Australia. To avoid any competition concerns, CK Infrastructure led consortium has proposed a divestment package which would include APA’s interests in the Goldfields Gas Pipeline, Parmelia Gas Pipeline, Mondarra Gas Storage Facility and a standalone management team.