Envestra Limited [ASX: ENV] is natural gas distributor in Australia. The company distributes natural gas to retail and industrial customers through its transmission pipelines. ENV own 22,500kms of natural gas distribution networks and 1,120kms of transmission pipelines. Envestra serves around 1.14 million customers in Victoria, New South Wales, Northern Territory, Queensland and South Australia.
The share price closed 2.73% higher on Thursday
In May this year, CK ENV Investments launched a 50% takeover of Envestra. CK are willing to pay $1.32 per share. When CK announced the offer, ENV shares were trading at $1.145. To be accepted by CK ENV Investments, there must be a 50% take up of Envestra’s shareholders. It expires on Friday, 8th August.
CK ENV Investments offer isn’t the first this year for Envestra.
Earlier this year in March, APA Group [ASX: APA] — Australia’s largest natural gas distributor — made a $2.1 billion takeover offer for ENV. APA have a 33% stake in the company.
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However, two months later, the CK ENV Investments trumped this with the current $1.32 per share offer.
APA have accepted CK ENV Investment offer and they will sell their 33% stake in Envestra.
ENV’s share price has rallied 17% so far this year. It’s also offers a decent yield of 4.6%.
However, should CK ENV Investment’s offer not go ahead, Envestra’s share price will drop.
In the unlikely chance CK ENV Investment 50% takeover doesn’t happen, Envestra is likely to attract another take over in the future.
Shae Smith+
Editor, Money Weekend
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