APA Group (APA) has increased its interest in Envestra Limited by 11.5% to 30.6% through participation in and partly underwriting Envestra’s rights issue, for a total cost of $64.4 million.

APA took up its entitlement under the issue of $21.2 million. APA has also taken up the shortfall of the Envestra rights issue pursuant to its underwriting role for $43.2 million, net of underwriting fees. As a result, APA’s interest in Envestra has increased from 19.1% to 30.6%.

APA’s Managing Director, Mr Mick McCormack, said "Envestra’s capital raising has provided us an excellent opportunity to increase our interest at an attractive price. Owning and operating gas infrastructure is part of our core strategy and we are comfortable holding a 30.6% interest in Envestra while continuing to provide asset management and operation services under our long term arrangements with the gas distributor."