(Bloomberg) -- Natural gas infrastructure company APA Group trumped Brookfield Asset Management Inc.'s $7 billion bid for AusNet Services Ltd. as Australia witnesses an unprecedented volume of mergers and acquisitions.
Sydney-based APA made a non-binding indicative proposal of A$2.60 ($1.89) a share, the company said Tuesday in a statement. AusNet, which owns Australian power transmission and distribution assets, on Monday said it received an offer of A$2.50 a share from Brookfield and said it would negotiate on an exclusive basis.
“APA notes the announcement from AusNet yesterday of an indicative, non-binding and highly conditional proposal made by Brookfield Asset Management,” APA said. “APA is disappointed that AusNet has purported to enter into a period of exclusivity with Brookfield for effectively eight weeks.”
Brookfield, APA Group Enter Bidding War for Ausnet: M&A Snapshot
AusNet on Tuesday said it would consider APA's revised proposal once Brookfield's exclusivity period ends. The company jumped as much as 10% to A$2.60 after trading resumed on Tuesday, after rising a record 19% on Monday. APA fell as much as 6%.
Australia is set for its biggest quarter for deals on record, following a spate of M&A activity for infrastructure assets including Sydney toll roads, energy company Spark Infrastructure Group and Sydney Airport. There are almost A$88 billion in M&A transactions targeting Australian companies since the start of July, the highest total of any quarter dating back to at least 1998, according to data compiled by Bloomberg.
APA said in the statement that it approached AusNet on Sept. 1 with a proposal of A$2.32 a share, and that it had discussed the original proposal with State Grid Corp. of China, AusNet's second-largest holder. APA said it alerted AusNet on Sept. 16 that it intended to make a revised offer.
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