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    Regulatory Delay Could Push Oz APA's Takeover into 2019

Summary

The A$13 billion ($9.8bn) takeover offer by Hong Kong-based CKI was first announce in June this year.

by: Shardul Sharma

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Natural Gas & LNG News, Asia/Oceania, Security of Supply, Corporate, Mergers & Acquisitions, Corporate governance, Investments, Political, Regulation, Infrastructure, , News By Country, Australia

Regulatory Delay Could Push Oz APA's Takeover into 2019

Any delay in approval by Australia’s Foreign Investment Review Board to Hong Kong-based CK Infrastructure Holdings’ takeover of gas infrastructure company APA Group could push the final sale decision well into next year, APA chairman Michael Fraser said October 25.

Last month, Australia’s competition watchdog, the Australian Competition and Consumer Commission (ACCC), greenlit the proposed acquisition. The proposal now needs the Foreign Investment Review Board clearance. The A$13 billion ($9.8bn) takeover offer was first announce in June this year.

“The Foreign Investment Review Board is currently reviewing the matter and will make a recommendation to the Treasurer in due course. If the Treasurer’s approval is delayed, then it maybe that a securityholders meeting would not be held until the new year,” Fraser said.

“In terms of timing, it all depends on if and when the Treasurer were to give his approval. If approval were to be given in the next week or so, we envisage a meeting of APA securityholders to be held early in December. If the transaction was approved at that meeting, then payment to APA Securityholders would be targeted to occur by mid-January 2019,” he added.  

Fraser said that if the transaction does not proceed, the company will continue on with its growth strategy.