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APA accepts $13b offer from CKI

Australia's biggest gas pipeline company APA Group has accepted a $12.98 billion takeover offer from a consortium led by Hong Kong's CK Infrastructure (CKI).

The buyout, if successful, would make CKI the major player in Australia's east coast gas pipeline network.

"The offer made by the CKI Consortium is compelling ... the board unanimously recommends that security holders vote in favour of the schemes," APA chairman Michael Fraser said.

APA said due diligence by all parties was complete and, if the deal, which was announced in June goes through, APA shareholders would receive $11 in cash per share.

The offer currently represents an 11.8 per cent premium to APA's previous close on Friday.

CK Infrastructure, which is leading a consortium with CK Asset Holdings and Power Assets Holdings, said it is seeking regulatory approval for the deal.

To avoid competition concerns, CK Infrastructure has offered to divest all of APA's pipeline assets in Western Australia because it already owns the major Dampier-to-Bunbury gas pipeline in that state, acquired through its takeover of DUET.

The competition watchdog in June said, when the deal was first proposed, that it would take about 12 weeks to review the deal after receiving more information.

APA says the deal would not affect it's final distribution for the 2018 financial year, expected to be 24.0 cents per stapled security.

Austrlaian Associated PressBack to Breaking News

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