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APA Group has announced that it intends to sell into the Cheung Kong Group consortium’s offer for Envestra as detailed in the bidder’s statement dated 20 June 2014.

The offer consideration is $1.32 per Envestra share amounting to $784 million in gross proceeds and will realise an estimated pre-tax profit of $430 million which will be reported in the consolidated results of the Group in the year to 30 June 2015. APA confirms that on 25 July 2014, it received $21 million being the final dividend of 3.5 cents per share paid by Envestra on that date.

APA Managing Director Mick McCormack said: “The cash offer put forward by the consortium well exceeded our valuation of the Envestra business, even at full ownership. While our rationale for owning the Envestra business remains sound, APA assessed the value proposition of the offer and concluded that selling out of this investment and redeploying the proceeds in other opportunities will provide better longer term value for APA securityholders.”

APA will use the consideration received to fund ongoing growth and investment projects over the coming 12 to 18 months.

APA retains its operations and management agreement on the Envestra assets, which runs to 2027.

Michelle is a freelance journalist and editor who, as well as covering all the latest and breaking industry news, is a gun proofreader and editor who never misses a trick.

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