CKI hopes Treasurer Josh Frydenberg can stop the $13bn pipeline sale clock

Hong Kong’s CKI is hoping the Treasurer will delay his final call on its $13bn bid for APA as it scrambles to save the deal.

APA CEO Mick McCormack. Picture: James Croucher

Treasurer Josh Frydenberg is due to detail his final decision on the $13 billion CK Infrastructure’s bid for APA tomorrow amid continued talks on whether the bid can be saved.

In this respect CKI will welcome a delay in the decision.

Frydenberg said two weeks ago the bid was likely to be rejected because it was not in the national interests to have the east coast energy distribution in the hands of two foreign-controlled companies.

He said he would issue a final decision in two weeks which expires tomorrow.

Aside from the Hong Kong-listed CKI, the other company is China-based State Grid along with Singapore Power.

The Treasurer said the deal was “contrary to the national interests”.

CKI is exploring a range of potential alternatives like floating some of the assets into a separate company, a joint bid and other ownership alternatives are also being considered.

But it is not clear whether any of those options can meet the Government’s wishes and also chime with CKI’s objectives.

This confusion explains why the CKI camp would not object to a delay in the decision due tomorrow. Whether Fryenberg agrees remains to be seen.