HK tycoon offers $5.4bn for Australia energy firm

HK tycoon offers $5.4bn for Australia energy firm

Hong Kong tycoon Li Ka-shing talks to his son Victor during a news conference announcing the company results of CK Hutchison Holdings in Hong Kong on March 17, 2016. (Reuters photo)
Hong Kong tycoon Li Ka-shing talks to his son Victor during a news conference announcing the company results of CK Hutchison Holdings in Hong Kong on March 17, 2016. (Reuters photo)

HONG KONG - Australian energy company Duet Group says it's considering a multi-billion dollar takeover offer from the infrastructure arm of Hong Kong tycoon Li Ka-shing's business empire.

Duet said Monday that it recently received an unsolicited cash offer from Cheung Kong Infrastructure Holdings for A$3 a share. The offer is worth A$7.3 billion dollars ($5.4 billion).

The proposal comes after the Australian government in August blocked a A$10-billion joint offer from Cheung Kong and Chinese state-owned State Grid to lease a Sydney electricity grid, citing national security grounds.

That deal was scuppered amid increasing wariness over Chinese foreign investments, particularly by state-owned companies.

Duet operates a 1,600-kilometre gas pipeline in Western Australia and gas and energy networks in Melbourne.

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