Australia's Asciano accepts Qube-Brookfield joint $6.8b bid
Australian rail freight and cargo port operator Asciano has accepted a joint takeover offer from consortiums led by Qube Holdings and Brookfield Asset Management worth A$9 billion ($6.8 billion).
The deal features several co-investors, including Canada Pension Plan Investment Board (CPPIB), China Investment Corporation (CIC) and Qatar Investment Authority (QIA).
The buyers will pay A$9.28 per share in cash for all Asciano's shares. Brookfield and Qube were reported to be considering this offer in February, after Asciano's board accepted an A$8.8 billion bid from the Qube consortium, and rejected the Brookfield consortium's bid. Since then, QIA has joined the Brookfield consortium.
According to a filing, CPPIB, CIC, Global Infrastructure Partners, GIC Private, and British Columbia Investment Management Corp. will take over Asciano's Pacific National rail business. A joint venture formed by Brookfield and Qube will acquire Asciano's Patrick ports business, and the Brookfield consortium will acquire Asciano's 50% stakes in Australian Amalgamated Terminals and ACFS Port Logistics.
The offer is still subject to approval by shareholders and regulators, including the Australian Competition and Consumer Commission (ACCC), which had raised concerns about Brookfield's prior bid over possible effects on competition in Western Australia and Queensland's rail haulage services markets. Asciano's board has also requested an independent review the deal to confirm it is in the best interest of shareholders.
Asciano, formed in 2006, is Australia's only integrated rail, ports, stevedoring and landslide logistics business, and employs 8,000 people across Australia and New Zealand. For the year ended June 2015, the company reported revenue of A$3.8 billion, down from A$4 billion the year before. Over the same period net profit rose from A$495 million to A$585 million.
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