Australia's Foreign Investment Review Board has approved a $7.48 billion takeover offer for energy utility operator DUET Group by a Hong Kong consortium led by Cheung Kong Infrastructure.
DUET's two boards have backed the bid from the consortium, which comprises CKI, which is owned by billionaire Li Ka-Shing; Cheung Kong Property; and Power Asset Holdings.
DUET said on Friday it had been advised by the consortium that Treasurer Scott Morrison had no objection to its proposed acquisition.
Also, the Treasurer's approval was not subject to any conditions that the consortium considers unacceptable.
"We are pleased that a key condition in relation to the implementation of the proposed acquisition of DUET Group has now been satisfied," the chairman of DUET Company and DUET Investment Holdings, Doug Halley, said in a statement.
"The DUET boards believe that the consortium's proposal fully recognises the value of DUET's operating businesses and the platform for future growth that our management team has created."
DUET securities closed 26 cents, or 9.45 per cent, higher at $3.01.
DUET's security holders endorsed the proposed takeover at a meeting in Sydney on Friday.
DUET will now seek approval from the NSW Supreme Court.
The CKI-led consortium has offered $3.03 in cash for each DUET security, comprising up to $3.00 for each security and a special distribution of at least three cents per security.
DUET owns and operates energy infrastructure covering generation, gas transmission, and gas and electricity distribution.
Its core assets include the Dampier Bunbury Pipeline, United Energy and Multinet Gas.
CKI is a global investor in infrastructure, with assets in the UK, the 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.
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