APA Group has increased its takeover offer for Hastings Diversified Utilities Fund (HDF).
APA plans to increase its cash offer based on the level of ownership it achieves.
If APA achieves ownership of 90 per cent or more of HDF securities and becomes entitled to proceed to compulsory acquisition, the offer will increase by $0.18 from $0.62 to $0.80 cash and 0.390 APA securities for each HDF security.
If APA achieves ownership of more than 70 per cent but less than 90 per cent of HDF securities, the offer will increased by $0.10 cash to $0.72 in cash and 0.390 APA securities for each HDF security.
APA has also reduced a number of conditions since its initial offer in December last year.
The Group will waive the conditions of its offer relating to change of control and other matters relating to HDF’s financing arrangements.
The revised offer is higher to Pipeline Partners Australia’s current takeover offer of $2.43 per HDF security, submitted in May.
Pipeline Partners Australia has until 21 August 2012 to either provide an equivalent or superior outcome for HDF.
The independent directors have not, at this time, changed or withdrawn their unanimous recommendation of Pipeline Partners Australia’s offer, the company said.
