Hastings Diversified Rejects APA's Offer

Hastings Diversified Utilities Fund (HDF) has released its target statement today rejecting the takeover offer that it has received from rival APA Group in mid-December. The company board is recommending its investors to reject the offer as it undervalues the company.

APA proposed an offer for Hastings Diversified shareholders to receive 0.326 APA shares and 50 cents cash per share. The offer valued Hastings Diversified at $2, as it was based on the APA share price of $4.60 in December.

According to the company's target statement, APA's offer undervalues Hastings Diversified and that it is highly opportunistic as the company is about to undergo a period of strong revenue growth after upgrading its network in Queensland. Hastings Chairman Alan Cameran said to investors that APA is being opportunistic as Hastings has delivered expansion opportunities that will benefit shareholders in the years to come.

Though an independent valuation is not a requirement, it came as a surprise that Hastings Diversified's target statement does not include it. Hastings Diversified spokespan clarified that its target statement lacks independent valuation because it is not an offer that the company would likely entertain as it undervalues the company.

Hastings Diversified shares are stronger today by 1 cent to $2 as APA shares appear weaker 2 cents at $4.59.