APA the target of $13b Chinese takeover

APA the target of $13b Chinese takeover

APA Group (ASX: APA) has opened its books up to a group from China which has offered $13 billion to take over the Australian company.

The Australian energy giant says it has granted due diligence to a consortium led by CK Infrastructure Holdings (CKI) following a proposed cash offer of $11 per stapled security.

APA holds several key assets including gas pipelines and storage, wind farms and the Darling Downs solar farm.

The $11 per security offer is a 33 per cent premium to the $8.27 per share price prior to the market opening on Wednesday morning.

According to APA chairman Michael Fraser, the board is taking the offer seriously. The offer includes, but is not conditional upon, the divestment of several gas assets.

"The board believes APA has a very attractive business and is well positioned to continue delivering strong results and ongoing growth irrespective of whether the proposal proceeds to an offer," says Fraser.

As of Wednesday, the board has not yet made any recommendations in response to the proposal at this time and shareholders have been advised to take no action.

The Chinese consortium CKI already owns a number of Australian assets including Australian Gas Networks, Duet Group and a 51 per cent stake in SA Power Networks.

The takeover will be subject to Foreign Investment Review Board approval and the Australian Competition and Consumer Commission's approval.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How to conduct an effective board assessment: a step-by-step guide
Partner Content
Your directors should conduct a board assessment annually. Let's examine what a boa...
OnBoard, by Passageways
Advertisement

Related Stories

The Star hit with third shareholder class action

The Star hit with third shareholder class action

Class action law firm Phi Finney McDonald has served embattled casi...

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

The parent company of Boost Juice is set to return to Australian ha...

Emyria, Little Green Pharma shares spike after TGA green light for MDMA and psilocybin

Emyria, Little Green Pharma shares spike after TGA green light for MDMA and psilocybin

Alternative medicines stocks are on a tear today as investors take ...

KKR-backed Alludo presses on with Nitro Software takeover plans, brushes off shareholder rejection

KKR-backed Alludo presses on with Nitro Software takeover plans, brushes off shareholder rejection

A $526.8 million takeover proposal for Nitro Software (ASX: NT...