Cheung Kong Infrastructure to buy DUET

A consortium comprising Cheung Kong Infrastructure, Cheung Kong Property Holdings and Power Assets Holdings has announced its plan to acquire 100 per cent of Australian energy firm, DUET Group.

The equity value of the acquisition is estimated to be about $7.4 billion (approximately HK$42.4 billion), which is calculated based on the consideration of A$3 per DUET Stapled Security.

“On 10 November 2016, the Consortium approached DUET with a confidential, indicative, non-binding proposal to acquire DUET for $2.90 per stapled security, subsequently increased to $3.00 per stapled security as announced in December,” DUET’s Doug Halley said.

“Following a period of non-exclusive due diligence, the Consortium confirmed its offer of $3 per stapled security and subsequently agreed to the payment of a 3c special distribution by DUET.”

Completion of the acquisition is conditional upon a number of conditions precedent, including approval by the Foreign Investment Review Board of Australia and approval by DUET’s Securityholders.

Subject to the above conditions being met, the Schemes are expected to be implemented by mid-May 2017.