[ET Net News Agency, 8 November 2018] HSBC Global Research noted that The Treasurer of
Australia revealed that he intends to oppose the proposed acquisition of APA Group from a
consortium led by CK Asset Holdings (CKA)(01113)(60% stake), comprising CKI Holdings
(01038)(20%) and Power Assets (00006)(20%).
Hence, this AUD13bn acquisition would be of high risk of being turned down based on the
current proposal, said the research house. HSBC expects the share price will only be
mildly impacted if the deal does not go through. APA Group only represents one of CKA's
global acquisition targets to grow the recurrent income of the company.
HSBC maintained its "buy" rating on CKA, with an unchanged target price of HK$88.8. (KL)