APA has said it will keep its $10 bid for AusNet on the table pending the ruling of the Takeover Panel as it responds to APA’s call for the termination exclusive due diligence.
Late last week, APA appealed to the panel to scrap exclusivity arrangements between AusNet and rival bidder Brookfield or have AusNet insert a fiduciary out class to the exclusivity agreement.
The appeal is based on the claim that the exclusivity arrangement unfairly locked APA Group out of the deal, and either one amendment could reopen the doors for the second bidder.
In an attempt to undermine Brookfield’s offer, APA described the firm’s funding for its $9.6 million bid as “uncertain”.
Brookfield submit that these announcements contained misleading and incorrect information.
APA lobbed a bid for $2.60 per share on 20 September following Brookfield’s indicative offer price of $2.50 per share in cash.
APA has said its original 28 September deadline for AusNet to grant it due diligence access will be extended for so long as its panel application remains under review.
AusNet is an Australian utility and critical infrastructure asset supplying electricity and gas to Victoria.
At this stage, AusNet cannot talk to APA Group while the eight-week exclusivity agreement with Brookfield still stands.
On 4 October, the Takeover Panel confirmed in a media release that it had received an application from Brookfield in relation to the affairs of Ausnet, as well as a competing proposal From APA for control of Ausnet.
The statement read, “A sitting Panel has not been appointed at this stage and no decision has been made whether to conduct proceedings. The Panel makes no comment on the merits of the application.”
For more information visit the APA website.