+1-888-308-5802     
News Contact Us

CK Infrastructure to take over Australia’s gas pipeline firm APA Group

Author : Pankaj Singh | Published Date : 2018-08-14 

APA Group, the biggest gas pipeline company of Australia announced the acceptance of a A$12.98 billion takeover deal offered by a consortium led by CK Infrastructure of Hong Kong. Once the buyout materializes, CKI will gain the position of being a noted competitor in the east coast gas pipeline network of Australia.

CK Infrastructure consortium is inclusive of Power Assets Holdings and CK Asset Holdings with CKI being the consortium leader. The company is reportedly waiting for the deal to receive regulatory approval.

Michael Fraser APA Group chairman has been reported to term the offer made by CKI as “compelling” and said that the security holders have been unanimously recommended by the board to vote in favor of the schemes.

The deal was announced in June 2018 and it is being anticipated that once its goes through APA Group shareholders would receive A$11 in cash for each share. APA announced that due diligence by all parties was complete. The offer presently represents an 11.8% premium to APA's previous close on 10th August 2018.

Finance News Network reports that the conditional implementation agreement that APA and CKI have consented to is an all cash offer that ensures securityholders certainty of value and represents a premium of approximately 30% to APA’s recent trading prices.

CK Infrastructure already owns a major gas pipeline in Western Australia stretching from Dampier-to-Bunbury and therefore to avoid competitive concerns, will be divesting all of APA's pipeline assets in that state. Incidentally, CK Infrastructure has acquired the abovementioned pipelines through its takeover of DUET Group in 2017.

APA declared that the transaction will not affect the company’s final distribution for the FY 2018. The board expects the distribution to be 24% per stapled security, slated to be paid on 12th September 2018.

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

Related News

Cipla launches generic version of Remdesivir at a price of ₹4,000

Published Date: 2020-07-10         Author: Pankaj Singh

Cipla Limited, the multinational pharmaceutical company, has reportedly launched a generic version of the remdesivir drug (Cipremi) at a price of ?4,000 per 100 mg vial, making it among the least priced COVID-19 treatment available across the globe. According to sources familiar with the knowledg... Read More

Revival in UK hotel bookings after COVID-19 downturn, says Premier Inn

Published Date: 2020-07-09         Author: Pankaj Singh

UK has registered a revival in hotel bookings for conventional regional tourist destinations as people have started planning summer trips to the seaside and countryside, stated Premier Inn owner. The Chief Executive of Whitbread, Alison Brittain, has stated that larger cities like London continue... Read More

Fujitsu gravitates toward 'new normal' with new office working style

Published Date: 2020-07-08         Author: Pankaj Singh

Fujitsu Limited, a Japanese multinational IT company headquartered in Tokyo, has reportedly announced that it will boost its shift to becoming a digital transformation organization with an ambitious plan to transform the working style for its employees in Japan in the light of COVID-19 pandemic. ... Read More

© 2020 Fractovia. All Rights Reserved