APA wins battle for HDF
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AAP
August 21 2012, 10:30AM
On Friday, APA lifted its bid for Hastings just days after PPA had increased its cash offer for HDF.
PPA's all-cash offer of $2.43 a security, which previously had been accepted by HDF, was trumped by APA's revised offer of up to $2.60.
HDF on Tuesday said it had assessed APA's offer and unanimously recommended HDF securityholders accept it in the absence of a superior one.
"We are pleased the higher offer from the APA Group is recognising the value that has been built up through the hard work of the Hastings and Epic Energy team over many years for the benefit of securityholders," HDF chief executive Colin Atkin said in a statement.
The final price APA pays for HDF will depend on the level of HDF ownership it achieves.
If it achieves ownership of 90 per cent or more of HDF and is entitled to proceed to compulsory acquisition, APA's offer will be $2.60 per HDF security.
The offer will comprise 80 cents in cash and 0.39 APA securities for each HDF security.
If APA achieves ownership of more than 70 per cent but less than 90 per cent, its offer will be $2.52, comprising 72 cents cash and 0.39 APA securities.
Meanwhile, HDF will have to pay PPA a break fee of $12.3 million.
APA's offer is open for acceptance until September 4.
