The owners of Diamantina Power Station and the Carpentaria Gas Pipeline have approved a foreign takeover bid.
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The board of gas pipeline giant APA has unanimously backed Hong Kong-based utility firm CKI’s $13 billion takeover.
CKI and Power Assets Holdings made an all-cash offer of $11 a share for APA in June. “The offer made by CKI is compelling,” APA chairman Michael Fraser said.
“It represents a premium of over 30 per cent to APA’s recent trading prices and gives certainty to value to security holders. In the absence of a superior proposal, the board unanimously recommends security holders vote in favour of the schemes and all APA directors intend to vote their own security holdings in favour of the schemes.”
The deal includes a "no shop" agreement designed to stop APA from carrying out negotiations with other potential buyers. There is also a break fee of up to $50m payable to APA and a reverse break fee of $50m payable by CKI.
APA originally owned just 50% of Mount Isa’s Diamantina Power Station but bought AGL out in 2016.
They also own the 840km Carpentaria Gas Pipeline between Ballera in southwest Queensland and Mount Isa which also links up with Phosphate Hill and South32’s Cannington mine.