Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high

The new bid values the company at $5.2 billion.
The post Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high appeared first on The Motley Fool Australia. –

The Spark Infrastructure Group (ASX: SKI) share price is up to a new 52-week high after accepting a third takeover bid from a consortium of investors for $2.95 per share.

At the time of writing, shares in the company are trading for $2.72 each – up 4.62%. They opened at a 12-month high of $2.78.

Let’s take a closer look at today’s news.

The Spark Infrastructure share price just hit a new high

In a statement to the ASX, Spark Infrastructure says the Ontario Teachers’ Pension Plan Board and Kohlberg Kravis Roberts & Co (the consortium) have upped their offer after twice being rebuffed by the company.

The initial bid of $2.65 per share saw the Spark Infrastructure share price rise to its previous yearly high of $2.67.

In its statement, Spark says the price of the bid will be reduced by the dividend it pays for the interim period. On 1 July the company said this would be 6.25 cents per share. This implies a proposed price of around $2.89 per security.

The new bid represents a premium of:

26% on the Spark Infrastructure share price on 13 July close.
31% on the 3-month volume weighted average price.

While the group says it will engage further with the consortium, and allow it to complete the necessary due diligence, it notes “there is no certainty” it will proceed.

Any potential merger will be subject to standard conditions, such as completion of satisfactory due diligence, regulatory approval, and final approval by shareholders of Spark and the consortium.

This new bid values Spark Infrastructure at approximately $5.2 billion.

Company Profile

Spark Infrastructure owns 49% interest in three electricity distribution companies. Two of these are in Victoria and one is in South Australia. It also owns 15% of TransGrid, which supplies electricity to New South Wales. These assets are heavily regulated for both standards and pricing.

Spark Infrastructure share price snapshot

Over the past 12 months, the Spark Infrastructure share price has increased about 20%. Year-to-date, the company’s value has appreciated by an even greater 27%.

The post Why the Spark Infrastructure (ASX:SKI) share price hit a new 52-week high appeared first on The Motley Fool Australia.

Should you invest $1,000 in Spark Infrastructure right now?

Before you consider Spark Infrastructure, 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 Spark Infrastructure 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 May 24th 2021

More reading

ASX 200 midday update: Spark takeover, Virgin Money update

ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher

These were the best performing ASX 200 shares last week

Here are 3 of the most heavily traded ASX 200 shares today

Why ARB, Rhythm Biosciences, Sezzle, & Spark shares are storming higher

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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!