The Western Australian utility acquired the stake in APT during a transfer of ownership of a 30% holding – later reduced to 26% – from Australian Gas Light in an asset swap with the company.

The Federal Court ruled on Friday that Alinta’s acquisition did not contravene the Corporations Act, but upheld the Takeovers Panel ruling of unacceptable circumstances.

The company will be allowed to keep the units until the case is finalised.

Earlier this month, the Australian Competition and Consumer Commission ruled Alinta should sell its stake in APT amid concerns of reduced competition in the pipeline industry.