APA Group has announced a recommended unconditional, all-cash, off-market takeover offer for Ethane Pipeline Income Fund (EPX) by Australian Pipelines Limited as responsible entity of Australian Pipeline Trust.
APA currently owns 6.08 per cent of EPX securities. The Offer is for all the EPX securities that APA does not already own.
EPX is an investment vehicle that owns the Moomba to Sydney Ethane Pipeline that supplies ethane from the Cooper Basin production facility at Moomba, South Australia to the ethylene plant at Botany owned by, Qenos Pty Limited. The pipeline, which is the Fund’s only asset, was purpose-built to transport ethane gas from the Cooper Basin gas fields to Qenos, and then later sold with the Product Transportation Agreement in place.
The pipeline is externally managed by APA through a Management Services Agreement. APA also provides operation and maintenance services to EPX.
Under the terms of the Offer, EPX security holders will receive A$1.88 cash per EPX security. In addition, EPX security holders will be entitled to retain the declared EPX distribution for the March 2016 quarter of 3.25 cents per EPX security if eligible on the distribution record date.
Moomba to Sydney Ethane Pipeline
APA’s Chairman, Mr Len Bleasel AM, said:
“The addition of the Ethane Pipeline to APA Group’s portfolio of assets will extend and further diversify APA Group’s investment in related energy infrastructure. It also enables APA Group to expand our footprint into transporting alternate fuels, including potentially liquids in the longerterm, enhancing our position as an infrastructure owner in Australia’s growing energy markets.”