A Chinese consortium is set to take ownership of the Dampier to Bunbury gas pipeline and several power stations across Western Australia, after regulators and shareholders today approved the $7.5 billion takeover of listed company DUET Group.
Australia's Foreign Investment Review Board approved the takeover of Duet by a Hong Kong consortium led by Cheung Kong Infrastructure.
Duet's two boards have backed the bid from the consortium, which comprises CKI (owned by billionaire Li Ka-Shing), Cheung Kong Property, and Power Asset Holdings.
Duet said it had been advised by the consortium that Treasurer Scott Morrison had no objection to its proposed acquisition of Duet.
Also, the treasurer's approval was not subject to any conditions that the consortium considers unacceptable.
"We are pleased that a key condition in relation to the implementation of the proposed acquisition of Duet Group has now been satisfied," the chairman of Duet Company and Duet Investment Holdings, Doug Halley, said in a statement.
"The Duet boards believe that the consortium's proposal fully recognises the value of Duet's operating businesses and the platform for future growth that our management team has created."
Duet's securityholders voted overwhelmingly in favour of the proposed takeover at a meeting in Sydney today.
DUET will now seek approval from the NSW Supreme Court.
The CKI-led consortium has offered $3.03 in cash for each Duet security, comprising up to $3.00 for each security and a special distribution of at least three cents per security.
Duet's largest asset is the Dampier to Bunbury gas pipeline, and it has also developed lateral pipelines to Chevron's Wheatstone gas project and Fortescue Metals Group's Solomon iron ore mine.
Duet also owns multiple power generation assets, mainly in remote areas, after its takeover of Energy Developments.
CKI is a global investor in infrastructure, with assets in the UK, Netherlands, Canada, New Zealand, mainland China and Hong Kong.
The consortium already has significant investments in Australia, including majority stakes in electricity networks in Victoria and South Australia as well as control of the Envestra gas distribution grid in Victoria.
CKI was asvised by Morgan Stanley and King & Wood Mallesons while Duet was advised by Gresham Partners, Macquarie Capital and Allens.
