MELBOURNE, Australia — Australian pipeline operator APA Group’s directors are recommending shareholders accept a 12.98 billion Australian dollar (US$9.47 billion) takeover offer from a consortium led by Hong Kong’s CK Infrastructure Holdings Ltd. 1038, +0.26%
The consortium in mid-June made a conditional offer to buy APA APA, +0.81% for A$11 a share. The Australian company said Monday it had entered a takeover agreement at that price, which would be raised by 4 cents a share for each month that passes in 2019 if the deal hasn’t yet been implemented. The offer also won’t affect APA’s final dividend payment for the current year, which it expects will be 24 cents a share.
The offer remains subject to an independent expert’s conclusion that it is fair and reasonable, regulatory approval and a vote by APA shareholders expected to take place in late November.
An expanded version of this report appears on WSJ.com.
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