Security holders in gas pipeline company APA reaped the benefits of the Federal government blocking a rich Hong Kong takeover offer last year with the company revealing a sharp rise in earnings for the six months to December.
While the ACCC, the competition watchdog, has approved Hong Kong-based utility firm CKI’s $13 billion takeover bid for gas pipeline company APA is the offer still has two significant hurdles to overcome.
Amid all the talk of foreign influence in Australia (read Chinese for foreign) a multi-billion dollar bid for the country’s biggest pipeline infrastructure group will yet again test the bona fides of the Turnbull government (and the ALP) on the question of investment by Chinese related companies in sensitive areas.
Australia’s major gas pipeline owner APA Group has edged further into an integrated structure by paying $151 million to buy AGL Energy out of their jointly owned Diamantina power plant at Mount Is in northwestern Queensland.
APA Group (APA) is asking shareholders and the market for a massive $A1.839 billion via a discounted renounceable rights issue to help fund the $US5 billion ($A6 billion) purchase of the recently built pipeline in BG Group’s liquefied natural gas project in Queensland.
Hong Kong based CK Infrastructure has already had initial discussions with the ACCC and FIRB regarding its indicative bid of $11 per share for APA. But the broker suggests final approval is a "tough ask" given CKI already has an extensive footprint in Australia.