News: SKI UPDATE 1-Spark Infrastructure gets $3.7 bln buyout offer, says it undervalues co

(Adds detail, Spark comment)

July 15 (Reuters) - Australia's Spark Infrastructure (SKI) said on Thursday private equity firm KKR & Co KKR.N and Ontario Teachers' Pension Plan Board proposed to buy it for A$4.91 billion ($3.67 billion), adding the offer undervalued the infrastructure firm.

Spark shareholders will get A$2.80 for each share they own, a near 13% premium to the stock's last traded price of A$2.48 on Wednesday.

Trading in Spark shares was halted on Wednesday after the stock hit a two-year high on media reports of a buyout proposal.

Spark said in a statement that it did not grant due diligence to the consortium, adding "it was prepared to provide limited information on its business and its prospects".

The bid is the latest in a flurry of deal activity in Australia as record-low interest rates prompt companies with ample capital to chase higher yields just as the economy enjoys a sharp rebound from a pandemic-driven recession.

Spark, which operates a electricity distribution network in Southern Australia, has seen its shares rise more than 17% so far in 2021, as infrastructure spending and industrial activity rebound. ($1 = 1.3367 Australian dollars)