CK Infrastructure Bids A$13bn For Australian Firm

A consortium led CK Infrastructure Holdings – founded by tycoon Li Ka-shing – has made an unsolicited A$13 billion bid for gas pipeline company APA on Wednesday, with the Australian firm agreeing to open its books.

APA's assets include gas transmission pipelines and storage, along with wind and solar farms across Australia. The firm's website said its 15,000 kilometres of gas pipelines connect 1.3 million Australian homes and business.

The A$11 per share cash offer is a 33 percent premium to the company's A$8.27 closing price on Tuesday, with chairman Michael Fraser saying it was in shareholders' interests to engage further.

It agreed to allow the Hong Kong powerhouse to undertake due diligence.

"The APA board will continue to evaluate the proposal and will update APA's security holders and the market as appropriate," Fraser said in a statement.

APA owns or manages and operates a portfolio of assets worth in excess A$20 billion.

Any takeover would be subject to Foreign Investment Review Board approval, with the consortium, comprising CK Infrastructure Holdings, CK Asset Holdings and Power Assets Holdings, saying it had already held preliminary talks with the FIRB.

CK Infrastructure Holdings already owns Australian interests including power provider Duet Group and the deal would involve some of APA's assets being divested to secure clearance from the country's competition watchdog.

In March, Li announced that he is stepping down from his business empire in May. But he is serving as a senior adviser to the group.