All-cash bid for Moomba gas pipeline
APA Group has made a $130.3 million all-cash offer to take over Ethane Pipeline Income Fund, owner of the Moomba-to-Sydney ethane gas pipeline.
Energy infrastructure giant APA already owns 6.08 per cent in the target company and operates and manages the pipeline for EPIF.
It has offered $1.88 in cash for every share owned in EPIF, representing a 30 per cent premium to the target company’s closing share price on Friday.
The offer has been recommended by the target company’s independent directors, which is subject to an independent expert who must consider it fair and reasonable.
APA is Australia’s largest gas pipeline operator and already owns a 2029km pipeline linking the Cooper Basin gas fields in Moomba, South Australia, with distribution networks in Sydney and regional NSW.
The takeover of EPIF’s pipeline would see the company expand into transporting alternate fuels, including potentially liquids in the longer-term, APA said.
AAP
