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

APA responds to media speculation today.
The post APA Group (ASX:APA) confirms potential Basslink Bank acquisition appeared first on The Motley Fool Australia. –

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 post APA Group (ASX:APA) confirms potential Basslink Bank acquisition appeared first on The Motley Fool Australia.

Should you invest $1,000 in APA Group right now?

Before you consider APA Group , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and APA Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

APA Group (ASX:APA) share price plunges on flat earnings growth in FY21
2 ASX dividend shares rated as buys by brokers

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!