The Motley Fool

The APA Group (ASX:APA) share price rockets on $13 billion takeover offer

Gas infrastructure and transportation company APA Group (ASX: APA) just received a $13 billion cash takeover offer.

A Hong Kong-based consortium led by CK Infrastructure Holdings (CKI) and including property developer CK Asset Holdings and utility company Power Assets Holdings offered $11 for each APA stapled security, a 33% premium on yesterday’s closing price of $8.27.

The offer also allows APA to pay a distribution not exceeding 24 cents per security for the first half of 2018.

The proposal – at this stage still indicative and non-binding – was hard to ignore, and APA opened up to due diligence on a non-exclusive basis.

Given the strategic nature of gas infrastructure and the fact that CKI already has a presence in the Australian utility market – after buying DUET in 2017 and Envestra in 2014 – the bidders have engaged in preliminary discussions with the Foreign Investment Review Board (FIRB) and the Australian Competition and Consumer Commission (ACCC).

To get a green light from ACCC, the consortium proposed a divestment package including APA’s interests in the Goldfields and Parmelia gas pipelines and in the Mondarra gas storage facility, which would be managed by a standalone management team.

Takeover fever now surrounds APA, pushing the share price up 23% to $10.14

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!