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Hong Kong's CK Group tells Australian critics it's not tied to Beijing - reports

Published 21/09/2018, 09:21 am
Hong Kong's CK Group tells Australian critics it's not tied to Beijing - reports

MELBOURNE, Sept 21 (Reuters) - Hong Kong's CK Infrastructure Holdings Ltd 1038.HK , leading a A$12.98 billion ($9.46 billion) bid for Australia's biggest gas pipeline operator APA Group APA.AX , has rejected suggestions that it is subject to influence from Beijing.

CKI's bid was cleared last week by Australia's competition watchdog, but still needs approval from the Foreign Investment Review Board and Treasurer. Australian politicians have called for the government to block CKI's bid, raising fears the company could cut off critical gas supplies, even though it has owned gas and power distribution businesses in Australia for more than 20 years.

In response, CKI Deputy Managing Director Andy Hunter gave a rare interview to Australian media, in which he said the idea that the company was in some way influenced by the Chinese government was "naive" and "fictitious to say the least".

"There is a broad understanding by regulators and government that a Hong Kong public company with global operations is a very, very different thing from a state-owned enterprise from the People's Republic of China," the Australian Financial Review quoted Hunter saying.

However he ruled out meeting with politicians who are opposed to the APA takeover, saying it was more beneficial to "keep a low profile".

Australia blocked a joint bid by CKI and State Grid Corp of China for New South Wales electricity distributor Ausgrid in 2016 on national security grounds, but last year cleared CKI's takeover of gas and electricity distributor DUET Group.

"It was quite within the rights of the government and FIRB to decide what it decided (on Ausgrid), and we have moved on from that," Hunter was quoted saying in The Australian.

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"But we don't want to belabour the point because we have had far more clearances in Australia than we have had denial from regulators."

The Foreign Investment Review Board decision is set to come after Canberra recently banned Huawei Technologies Co from supplying equipment for Australia's planned 5G broadband network amid concern about Chinese access to critical infrastructure.

($1 = 1.3716 Australian dollars)

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