APA Group, Australia’s leading energy infrastructure business, has entered into a conditional Implementation Agreement (Implementation Agreement) with CK Infrastructure Holdings Limited (CKI), CK Asset Holdings Limited (CKA), Power Assets Holdings Limited (PAH) and CKM Australia Bidco Pty Ltd (Bidder) under which the consortium will acquire all of the stapled securities in APA under trust schemes.
On 13 June 2018 APA announced it had received an unsolicited, indicative and non-binding proposal from the CKI consortium for the acquisition. The schemes are targeted to be implemented by mid December 2018.
Implementation of the schemes is subject to certain conditions outlined in the Implementation Agreement. If implemented, APA Securityholders will receive AUD11.00 (US$8.09) cash per APA stapled security.
The transaction value represents a 30.5% premium to the 5 day volume weighted average price of APA stapled securities, a 31.4% premium to the 1 month volume weighted average price of APA stapled securities, an FY2017A EV/EBITDA multiple of 15.3x2 and an FY2018F EV/EBITDA multiple of 15.0x2.
The acquisition is unanimously recommended by APA Directors.