Australian gas pipeline owner Envestra has accepted the takeover proposal to acquire all of Envestra's shares for cash consideration of $1.32 per Envestra share (A$2.37 billion), from a consortium comprising Cheung Kong (Holdings) Limited, Cheung Kong Infrastructure Holdings Limited and Power Assets Holdings Limited, each of which is a member of the Cheung Kong Group.
Envestra's Independent Board Committee unanimously approved the offer from Cheung Kong Group and rejected the APA Group offer.
Cheung Kong Group wins therefore the battle to the APA Group, who had submitted an bid offer first.
APA Group, Australia's largest transporter of natural gas, had agreed to take over gas distributor Envestra Ltd in March after hiking its offer to A$2.06 billion ($1.84 billion). But for the deal to go ahead, more than 75 percent of non-APA shareholders must support the sale. As Cheung Kong Group hold 26 percent of non-APA shareholders, the company was able to stop the deal and make a counteroffer.
Goldman Sachs was acting as financial adviser and Johnson Winter & Slattery was acting as legal adviser to Envestra.
Envestra operates natural gas transmission and distribution networks throughout Australia.
Envestra was formed when the Government of South Australia sold SAGASCO, its vertically integrated natural gas monopoly, to Boral. Boral combined SAGASCO's distribution network with businesses it owned in other states to form Envestra, which was floated in 1997.
Envestra owns and operates distribution systems in a number of towns and metropolitan areas including Adelaide, Brisbane, Melbourne, Rockhampton, Albury, Alice Springs, Bundaberg and Whyalla. Envestra also owns transmission pipelines in SA, Victoria, NSW, Queensland, and the Northern Territory.