The APA Group (ASX: APA) share price has sunk around 1% in the red in early trade on Wednesday.
APA shares are on the move as the energy player responded to media speculation about discussions it is holding with Keppel Infrastructure Trust.
What did APA Group announce?
APA confirmed in an announcement that it is in “confidential, exclusive and incomplete” discussions with Keppel Infrastructure to potentially acquire Basslink Pty Ltd.
Keppel Infrastructure Trust is “the largest diversified business trust in Singapore” and has over $5 billion in assets under management (AUM).
Basslink owns and operates a “370km high voltage, direct current (HVDC) electricity interconnector” that links the electricity grids of Victoria and Tasmania, running across Bass Strait to do so.
According to the release, APA has submitted the “confidential, conditional and incomplete” proposal to Keppel. No terms were specified of the conditional proposal, but APA did state it has $1.9 billion in “available liquidity” as of 30 June.
The acquisition would add to APA’s extensive list of energy assets that comprise a portfolio worth approximately $21 billion.
APA stresses that while all discussions are exclusive, they are incomplete, and that “no definitive agreement has been reached” between any parties involved.
APA Group share price snapshot
The APA Group share price has struggled this year to date, posting a loss of around 6% since January. Over the last 12 months things aren’t much better, sinking 12% in the red.
For context, the S&P/ASX 200 index (ASX: XJO) climbed around 25% over the past year.
The post APA Group (ASX:APA) confirms potential Basslink Bank acquisition appeared first on The Motley Fool Australia.
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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