Brookfield, Qube consider joint Asciano bid
A Brookfield Asset Management-led consortium and a group led by Qube Holdings that includes Canada Pension Plan Investment Board (CPPIB) and China Investment Corporation (CIC) are considering a joint A$9 billion ($6.5 billion) bid for Australian rail freight and cargo port operator Asciano.
The announcement comes days after Asciano's board accepted a bid from the Qube consortium to buy the company for A$8.8 billion, rejecting an earlier offer from Brookfield. According to a filing, the indicative terms for the joint proposal would involve an all-cash offer of A$9.28 per share; both previous offers involved cash and stock.
Additionally, Qube and the Brookfield consortium would acquire Asciano's Patrick port business in a 50-50 joint venture. The Brookfield group would take control of the Bulk and Automotive Ports Services businesses and a 50% stake in Australian Amalgamated Terminals (AAT); Qube would have the option to buy the AAT stake at a later date.
CPPIB, CIC and Global Infrastructure Partners, the other member of the Qube consortium, would acquire the Pacific National rail business, along with members of the Brookfield consortium other than Brookfield itself. Brookfield would take Asciano's 50% stake in ACFS Port Logistics.
Asciano's board is continuing to recommend the Qube proposal while the rival consortiums negotiate a formal bid, which must be approved by the Australian Securities and Investment Commission before it is submitted. Qube and Brookfield each own a 20% stake in Asciano.
If Asciano accepts the offer, it still must be approved by the Australian Competition and Consumer Commission (ACCC). The ACCC had raised concerns about Brookfield's previous bid, citing potential reduced competition in the Western Australia and Queensland rail haulage services markets.
Asciano, founded in 2006, is Australia's only integrated rail, ports, stevedoring and landslide logistics business. The company reported revenue of A$3.8 billion for the year ended June 2015, down from A$4 billion the previous year. Profits rose from A495 million to A$585 million over the same period.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.