APA to reap $784M from Envestra sale

Company News

Australia’s largest natural gas infrastructure business APA Group (ASX:APA) is poised to cash in from selling its 33 per cent stake in Envestra Limited (ASX:ENV)
 
APA will sell its stake to the Cheung Kong consortium as part of the Hong Kong group’s cash takeover offer comprising of $1.32 per share. 
 
APA expects to gain $784 million in gross proceeds from the transaction and an estimated pre-tax profit of $430 million. 
 
The announcement comes one day before Cheung Kong’s offer is set to close and months after it was launched in May. 
 
APA says it will use the funds to inject into ongoing growth and investment projects over the coming 18 months.  
 
APA Group reported a net profit of $121.7 million in the first half of the 2014 financial year.