re: Ann: Scheme Booklet approved for despatch... Well, now we...

re: Ann: Scheme Booklet approved for despatch... Well, now we have details about the scheme, including the arguments against by Li KS and his two associates on ENV's board.

The scheme consideration is clearer than previous announcements:
(a) .1919 share swap (no confusing $1.17 sp);
(b) $1.17 per ENV share that is exchanged for cash.

Arguments by the two directors from Cheung Kong Infrastructure Fund (CKIF) suggest that their fund wants to focus on regulated assets. Their first argument is that ENV is a stable regulated asset whereas APA is more volatile unregulated. Significantly, they don't mention AER's new rate of return guidelines and other changes that experts believe will suppress ENV's future growth.

Their second argument is that APA hasn't provided a large enough cash pool ($241m) for those who want cash instead of APA shares. The third (brief) argument is that ENV is worth more than APA is offering, but that argument mainly flips back to APA's risk profile and cost of liquidating APA shares is the scheme is approved.

In short, CKIF seems to focus on regulated assets, the scheme would upset that condition, and APA's limited cash pool may require CKIF to receive and then sell off APA shares. CKI Holdings ann report (Feb14) suggests that its assets are mostly regulated.