APA Group offered to purchase the rest of Envestra Ltd. for about AUD1.3 billion. While APA Group owns pipelines that supply well over half of the country's natural gas supplies, Envestra Ltd is still one of the Autralia's biggest gas distribution firms.
APA Group offered an equivalent of AUD1.10 per Envestra share, the Sydney-based firm stated in a press release. AUD1.10 per share is 3.8% more than yesterday's close. According to the statement, APA Group presently holds 33% of Envestra's shares and manages the Envestra's gas distribution systems including its pipelines.
"Existing shareholders may seek to extract a higher takeover premium, as well as a cash component to the offer price. However given APA's existing stake in Envestra is 33 percent, at this stage it is difficult to believe that a competing proposal will emerge ," said an analyst at RBS Morgans Ltd who has been following the developments.
Join the Conversation