The APA Group (ASX: APA) share price is climbing today following a company announcement on a debt acquisition.
At the time of writing, the energy infrastructure company’s shares are swapping hands for $9.23, up 0.98%.
APA acquires partial interest in Basslink debt
Investors are picking up APA shares after the company provided its latest update to the ASX this morning
According to its release, APA has bought an interest in the debt of Basslink, valued at around $99 million.
Basslink went into voluntary administration and receivership on 12 November amid recent disputes with Hydro Tasmania and a failed sale process with APA.
Basslink owns and operates the 370-kilometre high-voltage direct current (HVDC) electricity interconnector between Victoria and Tasmania. As the only electricity interconnector between Tasmania and mainland Australia, Basslink provides two-way access to 500 megawatts of electricity. This infrastructure allows the state to export renewable energy to the mainland.
The debt was acquired at a discount and funded from APA’s existing debt facilities.
Furthermore, APA advised that it is interested in buying Basslink from its receivers and managers, Nexus Australia Management.
APA CEO and managing director Rob Wheals commented:
The acquisition of the debt interest in Basslink demonstrates APA’s commitment to supporting this critical energy infrastructure so that it can continue to deliver reliable interconnected electricity between Tasmania and Victoria, and into the National Electricity Market.
The potential acquisition of Basslink is consistent with our strategy to expand our electricity transmission footprint and invest in renewable energy sources.
APA share price summary
The APA share price has fallen by more than 12% since this time last year. When looking at year to date, its shares are down by almost 5%.
APA commands a market capitalisation of roughly $10.86 billion, with approximately 1.18 billion shares on issue.
The post Why is the APA (ASX:APA) share price pushing higher today? appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position 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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