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Power & Utilities

APA Group gas pipeline fetches A$400M

APA Group (ASX: APA) has sold its Moomba Adelaide Pipeline System to local wealth manager QIC Global Infrastructure for $400.6 million.

The sale of the 1,184 kilometre long pipeline has attracted quite a bit of international interest with QIC out bidding competitors like Hong Kong's Cheung Kong Infrastructure Holdings.

A consortium comprising Japan's Marubeni and Deutsche Bank's RREEF Infrastructure unit also bid for the asset.

The pipeline, which transports natural gas from the remote Cooper Basin to Adelaide, was acquired by APA as part of its acquisition of a controlling interest in Hastings Diversified Utility Fund in October 2012.

APA agreed to divest the asset to alleviate anti-trust regulators’ competition concerns.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

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