Carlyle takes 15% stake in Qube Logistics

This breaks down into unconditional and conditional placements by CIP of A$46.3 million initially, and a further $70.3 million on regulatory and shareholder approval, for a total of $116.5 million.

If completed, it will put Qube "...in a very strong financial position to increase its shareholding in P&O Trans (POTA) through call and put options, pursue new acquisitions and undertake development projects across its operating divisions and within the strategic development assets," the company said in a statement. It will likewise give CIP a seat on Qube's board.

Based on Qube's latest performance numbers, CIP's timing is fortuitous. The Australian company's net profit for the first half of the year ending December 31 spiked by 207% to A$36.7 million, compared to $12 million in the preceding six months. Total EBITDA was up 47.8%.

CIP MD Robert Dove effused, in a statement, "Qube's management is one of the strongest in the sector globally. This partnership combines complementary capabilities and provides Qube with greater resources to capitalize on its growth opportunities."

Chris Corrigan, chairman of Qube's landslide logistics group, is something of a legendary player in this segment in Australia. In the 1990s he was in the thick of the bitter waterfront disputes of that time. Then, a decade later, he was equally feisty in his defense of his stevedoring business, Patrick Corporation, against a determined takeover bid by Toll Holdings, which was eventually agreed in 2006. His team presently has a solid core of former Patrick senior players, suggesting the critical mass of expertise to be a major force in the transport segment.

The likeliest first step in expanding the company is Qube's taking advantage of the option it claims to have to buy 50% of the stake its partner, Dubai-based DP World, held in POTA at the time it shed the majority of its Australian arm. Doing so would raise Qube's stake in POTA to 75%, and negotiations are reportedly underway to secure the remaining 25%.

As POTA is Australia's single largest provider of integrated port logistics services, the shareholding increase would enable Qube to tighten their grip on the country's consumer imports segment.

 

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• Topics
• Australasia
• Infrastructure
• The Carlyle Group