CKI launches APA bid

A CK Infrastructure Holdings-led consortium (CKI) has lodged a $13 billion takeover bid for APA Group, owner and operator of some of Australia’s key infrastructure.

The bid values APA shares at $11 per share and permits a distribution not exceeding $0.24 per stapled security payable in respect to the six months to 30 June 2018.

At this stage, the APA Board makes no recommendation in response to the proposal, with shareholders advised to take no action.

CKI has also informed APA that it has had discussions with and provided information to both the Foreign Investments Review Board (FIRB) and the Australian Competition and Consumer Commission (ACCC).

In respect to the ACCC, CKI 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.

The proposal is subject to a number of conditions, including: due diligence; entry into a scheme implementation deed; necessary approvals from the FIRB and the ACCC; CK Asset Holdings shareholders’ approval; and APA Directors indicating they will support and vote in favour of the schemes.

APA has signed a confidentiality agreement with CKI to undertake due diligence on a non-exclusive basis.

The Australian Financial Review reports that APA has hired Macquarie Capital and law firm King & Wood Mallesons to represent the company in the discussions.

The Hong Kong-based consortium is made up of CKI, CK Asset Management Limited and Power Asset Holdings Limited.

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