Why is the APA (ASX:APA) share price pushing higher today?

What did APA announce?
The post Why is the APA (ASX:APA) share price pushing higher today? appeared first on The Motley Fool Australia. –

The APA Group (ASX: APA) share price is climbing today following a company announcement on a debt acquisition.

At the time of writing, the energy infrastructure company’s shares are swapping hands for $9.23, up 0.98%.

APA acquires partial interest in Basslink debt

Investors are picking up APA shares after the company provided its latest update to the ASX this morning

According to its release, APA has bought an interest in the debt of Basslink, valued at around $99 million.

Basslink went into voluntary administration and receivership on 12 November amid recent disputes with Hydro Tasmania and a failed sale process with APA.

Basslink owns and operates the 370-kilometre high-voltage direct current (HVDC) electricity interconnector between Victoria and Tasmania. As the only electricity interconnector between Tasmania and mainland Australia, Basslink provides two-way access to 500 megawatts of electricity. This infrastructure allows the state to export renewable energy to the mainland.

The debt was acquired at a discount and funded from APA’s existing debt facilities.

Furthermore, APA advised that it is interested in buying Basslink from its receivers and managers, Nexus Australia Management.

APA CEO and managing director Rob Wheals commented:

The acquisition of the debt interest in Basslink demonstrates APA’s commitment to supporting this critical energy infrastructure so that it can continue to deliver reliable interconnected electricity between Tasmania and Victoria, and into the National Electricity Market.

The potential acquisition of Basslink is consistent with our strategy to expand our electricity transmission footprint and invest in renewable energy sources.

APA share price summary

The APA share price has fallen by more than 12% since this time last year. When looking at year to date, its shares are down by almost 5%.

APA commands a market capitalisation of roughly $10.86 billion, with approximately 1.18 billion shares on issue.

The post Why is the APA (ASX:APA) share price pushing higher today? appeared first on The Motley Fool Australia.

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

Before you consider APA, 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 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

2 ASX shares that could keep growing the dividend every year

ASX 200 (ASX:XJO) midday update: Westpac sinks, Macquarie raises $1.5bn

2 very unpopular ASX shares that’ll keep rising: expert

Motley Fool contributor Aaron Teboneras has no position 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!