Duet says bid by Li Ka-Shing's CKI approved by Australia

[SYDNEY] Billionaire Li Ka-shing's A$7.4 billion (S$7.7 billion) takeover bid for Duet Group has won foreign investment approval from the Australian government.

Treasurer Scott Morrison has no objection to the deal, Duet said in a statement to the stock exchange Friday. Shareholders will vote on the deal later today.

Duet would give Asia's third-richest man access to an energy network covering an area three times the size of Hong Kong as the tycoon faces uncertainties in Europe - his biggest market - with a string of elections this year.

The bid by three of Mr Li's companies - Cheung Kong Property Holdings Ltd, Cheung Kong Infrastructure Holdings Ltd and Power Assets Holdings Ltd - was backed by minority investors at shareholder meetings in Hong Kong last month.

Duet's shares rose 9.5 per cent to A$3.01 at 10:03am in Sydney, compared to the cash offer of A$3 per share.

Mr Morrison's office didn't immediately respond to an emailed request for comment.

BLOOMBERG