In the end, APA paid a big price; as Chanticleer reported, the multiples it paid were higher than what its own stock trades at.
Here's some new information about APA Group's knockout bid for Alinta’s Pilbara power assets.
However, sources close to MSIP, which is led by Mark McLean in Australia, told this column on Thursday that while it had been shortlisted, it withdrew from the auction soon after. Plenty of bankers are keen to talk up competitive tension in their sales process – especially to keep a gas pipeline giant when billions of dollars are at stake. It’s another thing trying to spook a bidder with phantom interest.
In the end, APA paid $1.7 billion, raising $750 million fresh equity at an 8.2 percent discount in what was its first equity capital markets trip in more than five years.
Street Talk is not saying it’s a bad deal, just that it's less of a knockout and more APA round-kicking itself in the face in the final furlong of the deal.
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