DUET says Australian govt approves $5.5 bln takeover by CKI consortium


Reuters

UPDATE 1-DUET says Australian govt approves $5.5 bln takeover by CKI consortium


(Adds more details, context on gov't policy)
    SYDNEY, April 21 (Reuters) - Australia'sDUET Group <DUE.AX>
on Friday said it had been advised by Cheung Kong Infrastructure
Holdings <1038.HK> (CKI) that the Australian government has
approved the Hong Kong company's $5.5 billion consortium-led
takeover offer.
    There had been concerns the government could reject the deal
after it last year blocked CKI from buying a state-owned power
grid, Ausgrid, on the grounds of "national security". The DUET
assets include a smaller power grid as well as a gas distributor
and a major gas pipeline. [nL4N1F50FP]
    DUET chairman Doug Halley said shareholders would now be
able to vote on the CKI bid at a meeting later on Friday
following the approval from the Foreign Investment Review Board
(FIRB).
    DUET shares jumped 9.5 percent at the open to A$3.01($2.26), just under the A$3.03 offer price, having traded well
below the bid price on concerns the deal could be blocked.
    In January, Australia formed a new body to oversee
investment in critical infrastructure assets, including power
grids. The government in February said it would weigh long-term
geopolitical considerations when assessing bids for those
assets. [nL4N1G61OJ]
    The CKI-led consortium also includes Cheung Kong Property
Holdings <1113.HK> and Power Asset Holdings <0006.HK>.
($1 = 1.3305 Australian dollars)

 (Reporting by Jane Wardell and Jamie Freed; Editing by Shri
Navaratnam)

Keywords: DUET M&A/CKI (UPDATE 1)



This article appears in: Stocks , Politics
Referenced Symbols: 0006 , 1038 , 1113 , DUE


More from Reuters

Subscribe






See headlines for 0006

Follow on:








Research Brokers before you trade

Want to trade FX?