The competition watchdog ACCC has today approved Hong Kong-based CKI Consortium’s $13 billion acquisition offer for gas pipeline company APA.
In the announcement to ASX today, APA Group (ASX:APA) said that Australian Competition and Consumer Commission (ACCC) will not oppose the previously announced takeover bid under which CKM Australia Bidco Pty Ltd has proposed to acquire all the stapled security in APA for $12.98 billion in all cash transaction.
Last month on 13 August 2018, APA and CKI consortium entered into an implementation agreement, pending regulatory approvals. Under that agreement APA’s Board of Directors unanimously approved CKI’s offer to acquire all stapled security in APA at 30% premium to $11.00 cash per security.
One month later to this agreement, today Australia’s competition regulator ACCC stated that vertical integration of CKI Consortium’s gas distribution assets and APA’s transmission assets would not harm competition.
This comes after ACCC has accepted a court-enforceable undertaking given by CK Consortium to divest significant gas assets in Western Australia as the competition watchdog was concerned that in the absence of undertaking the CKI Consortium would own most gas transmission and storage facilities in the west.
As per that undertaking CKI led consortium must sell the Goldfields Gas Pipeline, the Kalgoorlie to Kambalda Pipeline, Parmelia Gas Pipeline, and the Mondarra gas storage facility. However, certain regulatory and APA Securityholders approvals remain pending for completion of the scheme.
Following ACCC approval announcement, APA’s stock surged 1.228% to $9.989 on 12 September 2018 (1:01 PM AEST). The stock has recorded a performance change of +13.12% over the past one year.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.
