APA sweetens Envestra bid

Company News

APA Group (ASX:APA) has entered a scheme of arrangement to take full control of Envestra Limited (ASX:ENV), making a sweetened bid that values the pipeline operator at $2.2 billion.
 
APA, which owns 33 per cent of Envestra, says it’s put forward a revised proposal which implies a value of $1.17 per Envestra share.
 
The natural gas infrastructure business says the move follows discussions with Envestra and some limited due diligence.
 
Under the proposal, Envestra shareholders will be given a choice of either 0.19191 APA securities per Envestra share, or a combination of APA securities and cash.
 
APA says Envestra shareholders would be entitled to receive the dividend of 3.2 cents per share expected to be paid by Envestra in April 2014.
 
APA delivered a net profit of $296 million in fiscal 2013.