APT has now released its $30 million security purchase plan to its retail shareholders.
Western Australian utility, Alinta, used the institutional share placement as an opportunity to continue its raid on APT’s stock, to secure an additional 10.25% in the company. About a fortnight ago, Alinta paid $56.5 million to acquire an initial 4% stake in a move it said would “enhance flexibility” should its own merger with Australian Gas Light proceed.
But the Takeovers Panel this morning made “a declaration of unacceptable circumstances” in relation to Alinta’s shareholding in APT, the reasons of which are yet to be released.
Alinta told the ASX it will appeal the panel’s decision.
Meanwhile, the Australian Competition and Consumer Commission has also raised concerns over the two proposed mergers.
“The ACCC has identified issues that may raise competition concerns if the proposed Alinta and AGL merger proposal schemes do not go ahead and AGL retains its 30% interest in APT,” the competition watchdog said in a statement to the Australian Stock Exchange on Friday.
“The proposed acquisition [of GasNet] will mean that in addition to the key NSW pipeline being owned by APT, it will also own the key Victorian pipeline system.
“Competition issues arise due to the significant increase in vertical integration.”
APT managing director Mick McCormack said the placement of 37.4 million new ordinary shares at $4.55 each was well received by local and international institutions.
“The placement was well supported, underscoring support for the GasNet acquisition and APA’s growth strategy,” he said.
“The funds raised from the placement and SPP will be used to reduce gearing and to provide APT with additional flexibility and financial capacity to fund current acquisitions and development opportunities.”
Last week, the board of Victorian-focused pipeline and infrastructure specialist GasNet Australia recommended its shareholders accept APT’s $452 million takeover proposal.
APT’s independent offer trumped Commonwealth Bank of Australia’s $418 million offer, and was significantly higher than its earlier joint bid with Babcock & Brown Infrastructure of $371.7 million.
Buying GasNet’s transmission network would allow APT to increase gas volumes through its 1380km pipeline from Moomba in central Australia to Sydney.
