Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

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<p>Yesterday Victorian electricity operator <a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">AusNet Services (AST AU)</a>  <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02423286-3A576179?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it would open its books to Brookfield after receiving a revised non-binding Offer of A$2.50/share. It is understood Brookfield made a A$2.35/share Offer on the 30 August, followed by $2.45/share, before all parties settled on $2.50/share.</p>
<p>As it turns out, according to <a href="https://www.smartkarma.com/entities/apa-group" target="_blank" data-smartkarma-citation="entities:18658:1" rel="noopener">APA Group (APA AU)</a>, APA had approached AusNet with a non-binding proposal of A$2.32 on the 1 September, and that APA had made AusNet aware last Thursday (16 September) it intended to make a revised proposal.</p>
<p>APA sounded out AusNet’s major shareholders prior to its initial approach, and that APA understood Singapore Power was supportive of APA and AusNet engaging in discussions. APA had also discussed the initial proposal directly with State Grid. </p>
<p>Seems someone didn't get the memo.</p>
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<p>APA is disappointed that AusNet has purported to enter into a period of exclusivity with Brookfield for effectively eight weeks, notwithstanding AusNet’s knowledge of the pending revised, and potentially superior proposal, from APA.</p>
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<p>The "superior proposal", <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02423895-2A1324638?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> this morning, is a non-binding indicative Offer by way of a Scheme for A$2.60/share in cash and scrip.</p>
<p>Apart from the higher price, APA's Offer enables AusNet shareholders to participate in the back-end via APA scrip, plus there is no FIRB conditionality.</p>
<p>In addition, APA would only require 4 weeks of due diligence, compared to seven to eight weeks for Brookfield.</p>
<p>For now, APA will have to sit tight until the completion of Brookfield's exclusive due diligence. APA's proposal is conditional on AusNet granting due diligence access by the 28 September. </p>
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<p>More below the fold.</p>
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Yesterday Victorian electricity operator AusNet Services (AST AU)  announced it would open its books to Brookfield after receiving a revised non-binding Offer of A$2.50/share. It is understood Brookfield made a A$2.35/share Offer on the 30 August, followed by $2.45/share, before all parties settled on $2.50/share.
As it turns out, according to APA Group (APA AU), APA had approached AusNet with a non-binding proposal of A$2.32 on the 1 September, and that APA had made AusNet aware last Thursday (16 September) it intended to make a revised proposal.
APA sounded out AusNet’s major shareholders prior to its initial approach, and that APA understood Singapore Power was supportive of APA and AusNet engaging in discussions. APA had also discussed the initial proposal directly with State Grid. 
Seems someone didn't get the memo.

APA is disappointed that AusNet has purported to enter into a period of exclusivity with Brookfield for effectively eight weeks, notwithstanding AusNet’s knowledge of the pending revised, and potentially superior proposal, from APA.



The "superior proposal", announced this morning, is a non-binding indicative Offer by way of a Scheme for A$2.60/share in cash and scrip.
Apart from the higher price, APA's Offer enables AusNet shareholders to participate in the back-end via APA scrip, plus there is no FIRB conditionality.
In addition, APA would only require 4 weeks of due diligence, compared to seven to eight weeks for Brookfield.
For now, APA will have to sit tight until the completion of Brookfield's exclusive due diligence. APA's proposal is conditional on AusNet granting due diligence access by the 28 September. 


More below the fold.


AusNet Services (AST AU): Spurned APA Trumps Brookfield's Proposal

<p>Victorian electricity operator <a href="https://www.smartkarma.com/entities/ausnet-services" target="_blank" data-smartkarma-citation="entities:10293:1" rel="noopener">AusNet Services (AST AU)</a> has <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02423286-3A576179?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">announced</a> it will open its books to Brookfield after receiving a revised non-binding Offer of A$2.50/share, up from A$2.35 initially. The cash consideration will be reduced to the extent of any dividends paid. </p>
<p>The due diligence is on an exclusive basis. If a firm Offer is tabled, AusNet's board will unanimously recommend the proposal to its shareholders.</p>
<p>A firm bid will be subject to FIRB and shareholder approval. Neither Singapore Power nor China's State Grid  - AusNet's two largest shareholders - have made their intentions known as to the proposal.</p>
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<p>Following careful consideration, and consultation with its advisers, the board of AusNet considers that it is in the best interests of AusNet’s shareholders to engage further with Brookfield on the indicative proposal.</p>
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<p>The Offer price is full. Assuming Singapore Power and the State Grid are supportive, this is a done deal.</p>
<p>More below the fold.</p>

Victorian electricity operator AusNet Services (AST AU) has announced it will open its books to Brookfield after receiving a revised non-binding Offer of A$2.50/share, up from A$2.35 initially. The cash consideration will be reduced to the extent of any dividends paid. 
The due diligence is on an exclusive basis. If a firm Offer is tabled, AusNet's board will unanimously recommend the proposal to its shareholders.
A firm bid will be subject to FIRB and shareholder approval. Neither Singapore Power nor China's State Grid  - AusNet's two largest shareholders - have made their intentions known as to the proposal.

Following careful consideration, and consultation with its advisers, the board of AusNet considers that it is in the best interests of AusNet’s shareholders to engage further with Brookfield on the indicative proposal.

The Offer price is full. Assuming Singapore Power and the State Grid are supportive, this is a done deal.
More below the fold.

AusNet Services (AST AU) Opens Its Books to Brookfield

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<p>Just under two weeks after <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02395702-2A1310049?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejecting</a> two take-private proposals from KKR and Ontario Teachers’ Pension Plan Board (OTPPB), Aussie poles and wires company <a href="https://www.smartkarma.com/entities/spark-infrastructure-group" target="_blank" data-smartkarma-citation="entities:595:1" rel="noopener">Spark Infrastructure (SKI AU)</a> announced <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02399952-2A1312120?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">support</a> for the Consortium's improved proposal of $2.95/share. The Offer was up from the initial Offer of $2.70/share. Due diligence was subsequently afforded.</p>
<p>On the 10 August, Spark <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02405270-2A1314740?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">received</a> a request from the Consortium to engage with Public Sector Pension Investment Board (PSP), Canada's largest pension investment managers.  OTTPB and KKR said their interest in Spark is not contingent on PSP receiving all internal and external approvals to participate in the Consortium's revised Offer.</p>
<p>A firm Offer has now been <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02409984-2A1317108?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">tabled</a> and a SID entered into with KKR, OTTPB, and PSP. The terms remain the same. Spark's board unanimously recommends the Offer. The Scheme Meeting is expected to be held by the end of 2021.</p>
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<p>As discussed in <em><a href="https://skr.ma/LdjsX" target="_blank" rel="noopener">Spark Infrastructure (SKI AU): KKR &amp; OTPPB Pay Up</a></em>, $2.95/share appeared a full price. This looks done to me.</p>
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<p>More below the fold.</p>
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Just under two weeks after rejecting two take-private proposals from KKR and Ontario Teachers’ Pension Plan Board (OTPPB), Aussie poles and wires company Spark Infrastructure (SKI AU) announced support for the Consortium's improved proposal of $2.95/share. The Offer was up from the initial Offer of $2.70/share. Due diligence was subsequently afforded.
On the 10 August, Spark received a request from the Consortium to engage with Public Sector Pension Investment Board (PSP), Canada's largest pension investment managers.  OTTPB and KKR said their interest in Spark is not contingent on PSP receiving all internal and external approvals to participate in the Consortium's revised Offer.
A firm Offer has now been tabled and a SID entered into with KKR, OTTPB, and PSP. The terms remain the same. Spark's board unanimously recommends the Offer. The Scheme Meeting is expected to be held by the end of 2021.


As discussed in Spark Infrastructure (SKI AU): KKR &amp; OTPPB Pay Up, $2.95/share appeared a full price. This looks done to me.


More below the fold.


Spark Infrastructure (SKI AU): KKR/OTPPB/PSP's Firm Offer

Last Week in Event SPACE: SOHO China, Invesco Office, Iress, WH Group, PCCW

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<p>After <a href="https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02395702-2A1310049?access_token=83ff96335c2d45a094df02a206a39ff4" target="_blank" rel="noopener">rejecting</a> two take-private proposals from PR outfit firm KKR and Ontario Teachers’ Pension Plan Board (OTPPB), Aussie poles and wires company <a href="https://www.smartkarma.com/entities/spark-infrastructure-group" target="_blank" data-smartkarma-citation="entities:595:1" rel="noopener">Spark Infrastructure (SKI AU)</a> has ostensibly supported the Consortium's improved tilt of $2.95/share.</p>
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<p>The Consortium (KKR/OTPPB)'s latest proposal, up from the initial Offer of $2.70/share, was considered by Spark's board to be in the interest of its shareholders to engage further. As such, Spark has provided the Consortium with due diligence on a non-exclusive basis.</p>
<p>This Offer remains pre-conditional, and is subject to satisfactory DD, together with board approval from both KKR and OTPPB.</p>
<p>A firm Offer, should one unfold, would be subject to FIRB approval, and the approval from Spark's shareholders at a Scheme Meeting.</p>
<p>Yet this looks like a full (er) Offer than the one rejected on the 15 July.</p>
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<p>More below the fold.</p>
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After rejecting two take-private proposals from PR outfit firm KKR and Ontario Teachers’ Pension Plan Board (OTPPB), Aussie poles and wires company Spark Infrastructure (SKI AU) has ostensibly supported the Consortium's improved tilt of $2.95/share.


The Consortium (KKR/OTPPB)'s latest proposal, up from the initial Offer of $2.70/share, was considered by Spark's board to be in the interest of its shareholders to engage further. As such, Spark has provided the Consortium with due diligence on a non-exclusive basis.
This Offer remains pre-conditional, and is subject to satisfactory DD, together with board approval from both KKR and OTPPB.
A firm Offer, should one unfold, would be subject to FIRB approval, and the approval from Spark's shareholders at a Scheme Meeting.
Yet this looks like a full (er) Offer than the one rejected on the 15 July.


More below the fold.


Spark Infrastructure (SKI AU): KKR & OTPPB Pay Up

Australia

DUET Group invests in energy utility assets located in Australia and New Zealand.  The Group's investment assets include gas pipelines and electricity distribution networks.

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DUET Group (DUE AU)

AusNet Services (AST AU): Spurned APA Trumps Brookfield's Proposal

Assuming APA is granted DD - after the completion of Brookfield's - this transaction may drag into 2Q22. You have two large players in the mix. I...

David Blennerhassett

AusNet Services (AST AU) Opens Its Books to Brookfield

Assuming an estimated effective date towards the end of March 2022 - today's close is around a gross/annualised return of 5.9%/11.6%. Not bad....

David Blennerhassett

Spark Infrastructure (SKI AU): KKR/OTPPB/PSP's Firm Offer

Trading tight at a 2.0%/6.6% gross/annualised spread. Franking credits may add up to an additional A$0.05/share to those shareholders who can take...

David Blennerhassett

Last Week in Event SPACE: SOHO China, Invesco Office, Iress, WH Group, PCCW

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Spark Infrastructure (SKI AU): KKR & OTPPB Pay Up

Assuming ~5 months to complete, this is trading at a gross/annualised return of 5%/12.6%. I don't expect any shareholders to oppose, and FIRB...

David Blennerhassett

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