Australia's APA extends deadline for AusNet bid amid takeover tussle

AUSTRALIAN gas pipeline operator APA Group is extending a conditional deadline in its takeover offer for AusNet Services, pending the outcome of its application to the government's Takeovers Panel to scrap exclusivity arrangements between AusNet and its potential buyer, Canada's Brookfield Asset Management.

Among other conditions set out in its offer for the energy company, APA said its original Sept 28 deadline for AusNet to grant it due diligence access will be extended for so long as its panel application remains under review.

In its filing to the Australian Securities Exchange on Wednesday, APA continued to highlight its strategic rationale for its proposed acquisition as "compelling".

A combination of APA and its peer AusNet will result in Australia's largest energy transmission and distribution infrastructure utility, it said.

According to APA, this would equip the combined entity with scale and capability to accelerate growth in energy transmission infrastructure, achieve cost synergies and revenue growth opportunities, and provide substantially greater liquidity and free float, among others.

The group added that it has received positive feedback from shareholders of both APA and AusNet regarding its takeover proposal, which it considers superior to Brookfield's.

Brookfield's indicative offer price is A$2.50 (S$2.45) per share in cash, which will be reduced to the extent AusNet pays or declares a dividend before the proposed scheme of arrangement is implemented.

APA entered the takeover fray for AusNet with its A$2.60 per share offer in cash and stock, a day after Brookfield made its bid for AusNet on Sept 20.

It later sought for the Takeovers Panel to terminate Brookfield's exclusivity arrangement with AusNet, which is partly owned by Singapore Power. The matter remains under investigation by the Takeovers Panel.

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