Australia’s largest gas infrastructure business APA Group (ASX:APA) has made a bid for all the shares it does not already own in pipeline owner Hastings Diversified Utilities Fund (ASX:HDF).
APA is offering Hastings 0.326 APA shares and 50 cents cash for every Hastings share, valuing the company at about $1.8 billion.
APA already holds a 20.7 per cent stake in Hastings and says the company’s pipeline assets form a natural fit with its infrastructure asset portfolio.
Separately, APA has announced the sale of its Queensland state gas distribution network to a new investment company.
APA will hold a 20 per cent interest in the new investment company and put $477 million in proceeds to paying down debt and securing control of Hastings.
In the 2011 financial year APA Group reported a net profit of $109 million.
