APA Group (ASX:APA) confirms potential Basslink Bank acquisition

APA responds to media speculation today.

| More on:
changing asx share price from acqusition represented by man reaching out to touch acquisition sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The APA Group (ASX: APA) share price has sunk around 1% in the red in early trade on Wednesday.

APA shares are on the move as the energy player responded to media speculation about discussions it is holding with Keppel Infrastructure Trust.

What did APA Group announce?

APA confirmed in an announcement that it is in "confidential, exclusive and incomplete" discussions with Keppel Infrastructure to potentially acquire Basslink Pty Ltd.

Keppel Infrastructure Trust is "the largest diversified business trust in Singapore" and has over $5 billion in assets under management (AUM).

Basslink owns and operates a "370km high voltage, direct current (HVDC) electricity interconnector" that links the electricity grids of Victoria and Tasmania, running across Bass Strait to do so.

According to the release, APA has submitted the "confidential, conditional and incomplete" proposal to Keppel. No terms were specified of the conditional proposal, but APA did state it has $1.9 billion in "available liquidity" as of 30 June.

The acquisition would add to APA's extensive list of energy assets that comprise a portfolio worth approximately $21 billion.

APA stresses that while all discussions are exclusive, they are incomplete, and that "no definitive agreement has been reached" between any parties involved.

APA Group share price snapshot

The APA Group share price has struggled this year to date, posting a loss of around 6% since January. Over the last 12 months things aren't much better, sinking 12% in the red.

For context, the S&P/ASX 200 index (ASX: XJO) climbed around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Evolution Mining, G8 Education, Lottery Corp, and Lynas shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Two men in hard hats and high visibility jackets look together at a laptop screen at a mine site.
Gold

Down 50% in a year, time to pounce on this beaten-down ASX 200 gold stock?

A leading expert offers his verdict on this beaten-down ASX 200 gold miner.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why CBA, G8 Education, JB Hi-Fi, and Vault Minerals shares are falling today

These shares are falling on Thursday. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

These were the worst ASX 200 shares to buy in June

These shares took a tumble last month. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Domino's, Helia, Qantas, and Zip shares are sinking today

These shares are having a tough time on hump day. But why?

Read more »

A sad man looks at his computer screen as he holds a slice of pizza in his hand with an open pizza box in front of him on his desk.
Share Fallers

Why did the Domino's share price just crash 17%?

ASX investors just sent Domino’s shares tumbling more than 17% today. But why?

Read more »

Red arrow going down with share prices in red symbolising a falling share price
Share Fallers

These 5 ASX All Ords shares were the biggest fallers of FY25

These are the ASX All Ords stocks you didn't want to own in FY25...

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why CBA, HMC Capital, Mineral Resources, and NIB shares are falling today

These shares are falling on Tuesday. But why?

Read more »