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APA Group and Envestra likely to merge

This follows continued negotiations between the two companies, after APA first proposed an indicative and non-binding proposal in July this year, under which both companies would be combined through an all-share merger.

APA has proposed an implied value of $1.17 per Envestra share.

Under the proposal, Envestra shareholders will have the option to receive either:

  • 0.1919 APA securities for each Envestra share; or
  • ,

  • A combination of APA securities and cash, whereby the cash component will be offered through a “mix and match facility”?, subject to an overall cap of $241 million.

APA has said it envisages a scheme of arrangement would be possible to implement by June 2014.

APA Chairman Len Bleasel AM said “We have always believed that combining APA and Envestra is in the best interests of both sets of shareholders.

“The completion of the acquisition of the Hastings Diversified utilities Fund and the subsequent sale of the Moomba to Adelaide Pipeline has allowed APA to focus on progressing the proposal to Envestra.”?

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