APA Group will expand the capacity of a gas pipeline in Western Australia to meet demand in the Pilbara mining region.
The company, Australia's largest natural gas infrastructure business, said the expansion was underpinned by a new 20-year gas transport agreement with Rio Tinto.
It comes as the board of Hastings Funds Management has urged security-holders of Hastings Diversified Utilities Fund (HDF) not to accept a $1.8 billion takeover bid by APA Group.
Hastings said in a letter to security-holders the bid did not account for HDF's significant cashflow growth that was both contracted and prospective.
Hastings also said APA's offer did not take into account that HDF security-holders who accepted the offer would not be entitled to APA's interim distribution of 17c per APA security.
Adjusting for this reduces the stated headline value of APA's offer by 5.5c per HDF security, the letter says. Hastings directors unanimously rejected the APA bid last week.
The Australian
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