Cheung Kong announced that he wanted
to buy the Australia's Envestra for $2.2 billion cash. The offer was made by the
consortium formed by two group of companies, represented 16.8% premium over the
closing price on the Australian natural gas supplier's stock the previous day.
Envestra enjoys a monopoly status
in Australia of the southern part in retail market, which serves 1.14 million
customers with natural 23,000 km gas grid.
The utility was the major
shareholder in APA Group, the Australia's largest natural gas infrastructure,
which had 33.4% at stake. The Cheung Kong Holdings, one of the Cheung Kong
subsidiaries involved in the acquisition, had a 17.5% interest. The other
subsidiary involved was Power Assets Holdings.
APA group made the first move
proposing the purchase of Envestra through $2.1 billion a combination of equity
and cash. APA wanted to expand the downstream end of gas business.
In March, the Envestra's board directors
agreed to accept the given offer, though two executives objected.
don't allow any Chinese owned your natural gas you will regret it for the rest of your life... it is for Australian people so therefore only Australian native can owned it.
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