ArrowArtboardCreated with Sketch.Title ChevronCrossEye IconIcon FacebookIcon LinkedinShapeCreated with Sketch.Icon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business Deals

CK group leads $9.8bn bid for Australian energy company

Hong Kong conglomerate continues overseas expansion laid out by Li Ka-shing

Hong Kong tycoon Li Ka-shing, right, listens to his son Victor Li, co-managing director and deputy chairman of CK Hutchison Holdings Ltd., during a news conference in Hong Kong on March 16.   © Reuters

TOKYO -- Three listed companies under the business empire created by Hong Kong tycoon Li Ka-shing have offered roughly $12.98 billion Australian dollars ($9.8 billion) to take over APA Group, an Australian gas pipeline operator, according to an announcement submitted to the Hong Kong Stock Exchange on Wednesday by the consortium.

This is the first acquisition proposed by the Hong Kong conglomerate since Li's retirement in May, as his successor Victor Li continues to push the overseas expansion agenda laid out by his father.

The consortium -- including CK Asset Holdings Ltd., CK Infrastructure Holdings Ltd. and Power Assets Holdings Ltd. -- confirmed submission of an "indicative, non-binding conditional" proposal to acquire all the issued stapled securities of the Australian company at AU$11 per share in cash.

However, in a statement issued by APA on the same day, the company said its board members will "engage further" with the consortium regarding the offered prices to achieve the "best interests" of shareholders.

"The board believes APA has a very attractive business and is well-positioned to continue delivering strong results and ongoing growth irrespective of whether the proposal proceeds to an offer," Group Chairman Michael Fraser noted in the statement.

APA Group owns and operates energy infrastructure assets worth $20 billion on mainland Australia, including gas transmission pipelines that deliver half of the nation's gas usage, according to the company's website.

Get unique insights on Asia, the most dynamic market in the world.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media