Hong Kong tycoon offers $5.4B for Australia energy firm
by Associated Press
HONG KONGDec 06, 2016 - 12:00 am GMT+3
by Associated Press
Dec 06, 2016 12:00 am
Australian energy company Duet Group said Monday it's considering a multibillion dollar takeover offer from the infrastructure arm of Hong Kong tycoon Li Ka-shing's business empire. Duet said it recently received an unsolicited cash offer from Cheung Kong Infrastructure Holdings for 3 Australian dollars a share. The offer is worth A$7.3 billion dollars ($5.4 billion).
The proposal indicates renewed interest from billionaire Li in bidding for Australian infrastructure assets following a setback in August, when the government blocked a A$10 billion joint offer from Cheung Kong and Chinese state-owned State Grid to lease a Sydney electricity grid, citing national security grounds. That deal was scuppered amid increasing wariness over Chinese foreign investments, particularly by state-owned companies.
Duet operates a 1,600 kilometer (994 mile) gas pipeline in Western Australia and gas and energy networks in Melbourne. The company said it's not certain that the deal will proceed further. Cheung Kong Infrastructure already owns significant energy businesses in Australia, as well as utilities in Britain and New Zealand and parking lots and in Canada.
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