Hong Kong investor CKI will be hoping the federal government approves its $7.3 billion takeover bid for DUET Group if the energy utility operator's shareholders back the deal.
DUET's two boards have backed the bid from CKI, which is owned by billionaire Li Ka-Shing and has offered $3 for every DUET share as well as a special dividend of three cents per share.
That represents a seven per cent premium to its closing price of $2.78 on Friday.
DUET said the special dividend will be exclusive of its interim dividend of 9.25 cents per share, which will be paid on February 16.
DUET shareholders will get to vote on the proposal in April.
"In the absence of a superior competing proposal and subject to the independent expert concluding that the schemes are fair and reasonable and in the best interests of DUET securityholders, each of the DUET boards unanimously recommend that DUET securityholders vote in favour of the schemes," DUET said in a statement.
CKI is a global investor in infrastructure, with assets in the UK, Netherlands, Canada, New Zealand, mainland China and Hong Kong.
The consortium already has significant investments in Australia, including majority stakes in electricity networks in Victoria and South Australia as well as control of the Envestra gas distribution grid in Victoria.
However, the Hong-Kong based group previously suffered a setback to its expansion plans in August when the federal government knocked back its $10 billion bid for a controlling stake in NSW energy network Ausgrid, citing security concerns.
DUET major assets include the Dampier-Bunbury gas pipeline in Western Australia, a two-thirds stake in Victoria's electricity distributor United Energy, Victoria gas distributor Multinet and clean energy firm Energy Developments.
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