APA Group Bids for Moomba-Sydney Ethane Pipeline

Australian gas infrastructure major APA Group has announced a recommended unconditional, all-cash, off-market takeover offer for Ethane Pipeline Income Fund (EPX).

APA currently owns 6.08 per cent of EPX securities. The offer is for all the EPX securities that APA does not already own, APA said in a statement published Tuesday.

EPX is an investment vehicle that owns the Moomba to Sydney ethane pipeline and is externally managed by APA through a Management Services Agreement. APA also provides operation and maintenance services to EPX.

APA’s Chairman, Len Bleasel AM, said that APA is a natural owner of EPX and the Moomba to Sydney Ethane Pipeline and is best placed to offer full value to EPX securityholders.

“The addition of the Ethane Pipeline to APA Group’s portfolio of assets will extend and further diversify APA Group’s investment in related energy infrastructure. It also enables APA Group to expand our footprint into transporting alternate fuels, including potentially liquids in the longer term, enhancing our position as an infrastructure owner in Australia’s growing energy markets,” Bleasel said.

Under the terms of the offer, EPX shareholders will receive A$1.88 cash per EPX security. In addition, EPX shareholders will be entitled to retain the declared EPX distribution for the March 2016 quarter of 3.25 cents per EPX security if eligible on the distribution record date, APA said.