Australia/Hong Kong: CKI bids US$9.8b for Australian gas pipeline group

A consortium led by Hong Kong’s Cheung Kong Infrastructure (CKI) has launched a AU$13 billion (US$9.8 billion) offer for Australian gas pipeline company APA Group, in what is expected to be the first test of a new review process for acquisitions of critical infrastructure in the country.

Victor Li, who succeeded his billionaire father last month as head of the CK group of companies, would get a company that delivers about half of the nation’s gas and add to an Australian portfolio that already includes power distributor Duet Group, reported Bloomberg.

APA also fits the mold of utility or infrastructure firms, those generating stable cash flows, that CK companies have been targeting in the run-up to billionaire Li Ka-shing’s handover to his eldest son, indicating the group’s penchant for safe assets will persist under the younger Li.

The unsolicited offer is one of the largest attempted takeovers so far this year in Australia.

Full Content: Bloomberg

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