Cheung Kong Infrastructure bids for Australia's Duet Group

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Cheung Kong Infrastructure bids for Australia's Duet Group

DUET Group has announced that it had received an unsolicited, indicative, incomplete, non-binding and conditional proposal from Cheung Kong Infrastructure to acquire 100% of DUET’s outstanding stapled securities at a price of AUD3.00 (US$2.2) per stapled security, payable in cash.

This proposal is being made by CKI together with one or more related entities including Power Asset Holdings (the CKI Consortium). In the interests of exploring options to recognise securityholder value, the DUET Boards have resolved to allow the CKI Consortium to undertake confirmatory due diligence on a non-exclusive basis, in order to present the DUET Boards with a binding proposal.

There is no certainty that, following the due diligence process, the CKI Consortium will submit a binding proposal or that there will be a recommendation by the DUET Boards to accept any binding offer. As a result, at this time securityholders are advised to take no action . The DUET Group will continue to keep securityholders informed of developments in accordance with its continuous disclosure requirements.

DUET Group is an ASX-listed owner of energy utility assets in Australia. During 2016, Duet completed two capital raisings totalling AUD1.88 billion (US$1.38 billion) . It used the raisings to fund the acquisition of Energy Developments for AUD1.4 billion (US$1.03 billion) and the remaining 20 per cent of the Dampier Bunbury Pipeline it did not already own.

Duet posted a 307 per cent leap in net profit attributable to stapled security holders to AUD195.8 million (US$143.4 million) in 2016 underpinned from earnings from the newly acquired business.

Duet Group has enlisted Macquarie Group to advise on the defence of the offer, while Morgan Stanley is assisting Cheung Kong Infrastructure.

Cheung Kong Infrastructure already has significant investments in Australia's energy sector, including in electricity networks in Victoria and South Australia.

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