Envestra merger bid
Australia’s largest natural gas infrastructure business, APA, has made a merger bid for South Australian gas distribution network group Envestra.
APA already owns 33 per cent of Envestra’s shares.
Envestra advised the stock market today that it had received an “unsolicited, indicative, conditional and non-binding proposal from APA Group to acquire all of the issued capital of Envestra”.
The proposal values Envestra at $1.10 per share; it closed yesterday at $1.06.
The distribution network owner said it will form an independent board sub-committee to consider the proposal.
It has appointed Goldman Sachs as financial advisor and Johnson, Winter and Slattery as legal adviser.
Envestra owns about 22,500 kilometres of natural gas distribution networks and 1,120 kilometres of transmission pipelines, serving over 1.14 million consumers in South Australia, Victoria, Queensland, New South Wales and the Northern Territory.
APA already operates the network for Envestra.
Envestra’s origins date back almost 150 years to the gas distribution networks of the former South Australian and Brisbane Gas Companies, and the Gas and Fuel Corporation of Victoria.
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APA has ownership interests in, and operates, the Envestra and the Allgas gas distribution networks, which together have approximately 25,000 kilometres of gas mains and approximately 1.2 million gas consumer connections.
APA also owns other energy infrastructure assets such as gas storage facilities and a wind farm.
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