Energy infrastructure giant APA Group has made a $130.3 million all-cash bid to take over Ethane Pipeline Income Fund (EPIF), which owns the Moomba-to-Sydney ethane gas pipeline.
APA already owns 6.08 per cent in the target company and operates and manages the pipeline for EPIF.
It has offered $1.88 in cash for every share owned in EPIF, representing a 30 per cent premium to the target company's closing share price on Friday.
The offer has been recommended by the target company's independent directors, subject to an independent expert considering it fair and reasonable.
APA is Australia's largest gas pipeline operator and already owns a 2,029km pipeline linking the Cooper Basin gas fields in Moomba, South Australia, with distribution networks in Sydney and regional NSW.
The takeover of EPIF's pipeline will help expand its footprint into transporting alternate fuels, including potentially liquids in the longer-term, APA said.
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