Cooper Energy (ASX:COE) confirms equity raising to fund APA acquisition

Company News

by Lauren Evans

Cooper Energy (ASX:COE) is set to acquire APA’s (ASX:APA) Orbost Gas Processing Plant for between $270 million and $330 million.

Cooper Energy will purchase the plant via four instalments to help fund the acquisition. The company will undertake a $244 million equity raising, comprising a $84 million placement to institutional investors and a 2 for 5 entitlement offer to raise $160 million.

Additionally, Cooper Energy announced a $400 million revolving corporate debt facility and $20 million working capital facility which will refinance the existing syndicated debt facility, conditional on completion of the acquisition.

Under the acquisition, the company plans to operate three gas fields and two gas plants supplying domestic gas into the South-east Australia gas market.

“Cooper Energy’s acquisition of the Orbost Gas Processing Plant is transformative for the company. It accelerates our strategic position in the Gippsland Basin and strengthens our end-to-end capability to produce, process and deliver gas to our high-quality domestic customers and the spot market,” said managing director David Maxwell.

“The acquisition represents the next step in Cooper Energy’s twin gas supply hub position and is underpinned by attractive market dynamics through the tightening South-east Australia gas supply.”

The transaction is expected to be completed in late July this year. 

Shares in Cooper Energy are in a trading halt, and traded at 32 cents on Friday. Shares in APA are trading 0.3 per cent lower at $11.23. 

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