Pipeline Partners Australia (PPA) has five days to increase its takeover offer for Hastings Diversified Utilities Fund (HDF) after a rival bidder lodged a superior proposal.
Hastings, which invests in energy infrastructure, is the subject of two takeover offers – an all-cash offer from PPA and a cash-and-scrip offer from fellow pipeline operator APA Group.
APA on Thursday stepped up the takeover battle by increasing its offer after being granted access to Hastings’ accounts earlier this week.
The independent directors of Hastings Funds Management Ltd (HFML), the responsible entity for HDF, on Friday deemed APA’s new offer superior to the PPA offer.
Under the terms of the takeover arrangement, PPA now has until midnight (AEST) on Tuesday August 14 to at least match APA’s offer, HFML said.
APA’s initial offer had an implied value of $2.00 per HDF security, and its new offer valued Hastings shares at $2.51 at the time it was made.
That value dropped slightly on Thursday with APA’s share price, to $2.48 per Hastings share.
PPA has offered $2.325 per HDF security.
