Investment banks Macquarie Capital, Morgan Stanley and Gresham Partners have started the new year with a bang.
The trio played roles in DUET Group and the Cheung Kong Infrastructure consortium's agreed $7.4 billion deal.
ASX-listed gas and electricity infrastructure owner DUET was advised by Macquarie Capital and law firm Allens, while Gresham was also involved advising DUET's board.
Morgan Stanley and law firm King & Wood Mallesons advised the bidder, which included Hong Kong's CKI and related entities Cheung Kong Property Holdings and Power Assets Holdings Ltd.
The deal, to be done via a scheme of arrangement, was struck at $3.03 a share as revealed by Street Talk on Monday morning and later announced by the company.
DUET recommended the bid subject to a review by independent expert KPMG Corporate Finance.
The offer was also subject to regulatory approvals, including foreign investment approval, and a DUET shareholder vote.
RBC analyst Paul Johnston told clients on Monday morning that the deal valued DUET at 1.6-times its regulatory asset base, which was "at the high end of valuations paid for regulated assets in Australia".
That number was based on a $3.12 a share offer, which includes the $3.03 bid and a 9.25¢ interim dividend to be paid to DUET shareholders on February 16. It also excluded DUET's "non-RAB" assets.