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Australia’s biggest energy infrastructure business reports solid profits

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Despite a failed take-over bid, Australia’s biggest energy infrastructure business has reported a net profit up 27% to 157.4 million.

The APA Group, who is responsible for 60% of Australia’s gas pipelines, has today delivered solid interim performance in the first half of this financial year.

The promising results come after a drawn-out and ultimately unsuccessful take over bid from Hong Kong’s CK Infrastructure Holdings.

The CEO of APA Group, Michael McCormack, tells Ross Greenwood, “CKI turned up on us with a bid which by any measure the board formed a view it was compelling”.

The ACCC went on to give the proposition “the tick” with regards to competition issues.

However, the bid halted when it reached the Foreign Investment Review Board.

Mr McCormack says the fears of foreign entities such as China being able to gain access to our gaslines were false and it “simply can’t happen”.

“I will note that there was a change of Prime Minister between when the board agreed to the transaction and when it was stopped,” says Mr McCormack.

“It really came down to a number of people… agitating at a political level and so the deal stopped.

“The retail shareholders, including my mother, they made it very plain and well known to me that they were happy that the transaction didn’t proceed.”

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