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APA Group (ASX: APA) has opened its books up to a group from China which has offered $13 billion to take over the Australian company.
The Australian energy giant says it has granted due diligence to a consortium led by CK Infrastructure Holdings (CKI) following a proposed cash offer of $11 per stapled security.
APA holds several key assets including gas pipelines and storage, wind farms and the Darling Downs solar farm.
The $11 per security offer is a 33 per cent premium to the $8.27 per share price prior to the market opening on Wednesday morning.
According to APA chairman Michael Fraser, the board is taking the offer seriously. The offer includes, but is not conditional upon, the divestment of several gas assets.
"The board believes APA has a very attractive business and is well positioned to continue delivering strong results and ongoing growth irrespective of whether the proposal proceeds to an offer," says Fraser.
As of Wednesday, the board has not yet made any recommendations in response to the proposal at this time and shareholders have been advised to take no action.
The Chinese consortium CKI already owns a number of Australian assets including Australian Gas Networks, Duet Group and a 51 per cent stake in SA Power Networks.
The takeover will be subject to Foreign Investment Review Board approval and the Australian Competition and Consumer Commission's approval.
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