AusNet (AST) proceed with Brookfield bid, APA misses out
APA +2.56%: looks to have lost out on its attempt to take over Victorian electricity grid and gas pipeline owner AusNet (AST) after Brookfield came back to the table with a $2.65/sh all cash bid. The AusNet board intend to unanimously recommend the offer to shareholders despite giving APA due diligence just a week ago. APA shareholders were unfazed with shares ticking up today – the scrip offer would have come with selldowns from a number of AST shareholders which would weigh on the stock short term regardless of the longer term value it could bring. The deal still has its hurdles with shareholder and FIRB approval still required. Singapore power owns around 33% of AST and has indicated it will accept, while China’s state owned power company which holds 20% has not yet declared intentions – it’s unlikely they will be as willing. FIRB will grapple with the idea of another key infrastructure asset going to offshore hands. For APA though, it should remove some short term pressure on the stock.
