• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 1 hour Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Mike Shellman's musings on "Cartoon of the Week"
  • 1 hour Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 1 hour China goes against US natural gas
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 19 hours Why hydrogen economics does not work
All-Time Low Spare Capacity Could Send Oil To $150

All-Time Low Spare Capacity Could Send Oil To $150

Many oil markets watchers have…

Libyan Oil Recovers, Exceeds 1 Million Bpd

Libyan Oil Recovers, Exceeds 1 Million Bpd

Libya’s oil output has once…

China CK Infrastructure Offers $7.8B For Australian Gas Pipeline Operator

Petchem industry

Hong Kong-based CK Infrastructure has made a US$7.8-billion (A$13-billion) bid for Australia’s largest gas pipeline operator, APA, the target company said. The price represents a premium of 33 percent to APA’s closing price a day before the bid was made.

For now, APA is advising shareholders to wait as the big is only indicative. However, the board has granted CK Infrastructure and its partners in the bidding consortium access to information for conducting due diligence, suggesting it is in favor of the offer.

Australia ABC News reports that the Hong Kong company already has an extensive presence in the Australian energy market, including stakes in the two largest utilities in Victoria, Citipower and Powercor, and SA Power Networks, the single electricity distributor in South Australia. The Chinese company also holds a 19.3-percent stake in gas pipeline operator Envestra, which serves around a million households and businesses, operating 21,000 km of pipelines.

In terms of pipelines, APA is the second-largest operator in Australia, with 15,000 km to its name but servicing 1.3 million households and businesses, mainly along the eastern seaboard. According to ABC News, the CK Infrastructure bid will certainly attract the attention of the competition authorities given its stake in Envestra, as well as its majority ownership in yet another gas pipeline operator, DUET Group, which the Chinese company bought for US$5.6 billion (A$7.4 billion) last year.

Related: Energy Efficiency Adds Value To Home Prices

Although the bid is preliminary, CK Infrastructure has already addressed potential competition concerns on the part of the Australian Competition and Consumer Commission and the Foreign Investment Review Board. The company has offered to divest all of APA’s Western Australian gas pipeline assets before or following the acquisition.

APA’s shares jumped by 22 percent on the announcement of the bid but failed to reach the price level offered by CK Infrastructure. According to Australian media, this suggests doubts on the part of investors that the Hong Kong company would easily win ACCC’s and FIRB’s favor.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News