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Category: Takeovers / Company News

Qube lobs $8.9b bid for Asciano, battles Brookfield offer

Thursday, 28 Jan 2016 07:58:30 | Michael Janda

Qube is seeking to fully acquire Asciano's Patrick container terminal business. (Kerrin Binnie: ABC TV News - file image)

A takeover battle is raging around one of Australia's key transport and logistics firms, with Qube launching an $8.94 billion bid for Asciano, in competition with Brookfield's similar offer.

Asciano's board has already backed Canadian infrastructure giant Brookfield's bid, also valued around $8.9 billion, but that was with the usual caveat of support in the absence of a superior offer.

Qube claims its offer is a better deal for Asciano shareholders, providing $6.97 per share in cash and one Qube share for every Asciano share.

The Australian bidder said its offer values Asciano at $9.17 per share based on Qube's 30-day volume-weighted average share price.

It said that Brookfield's offer currently values Asciano at approximately $8.77 a share.

However, at the time Brookfield's takeover bid was launched in August, its $6.94 in cash and 0.0387 Brookfield Infrastructure units per Asciano share valued the takeover target at $9.15.

The significant share components in each bid mean that the final value of each offer to Asciano shareholders will vary on the market fortunes of the respective bidders.

Qube is making its offer as part of a consortium with Global Infrastructure Management, Canada Pension Plan Investment Board and CIC Capital Corporation.

Under the proposal, Qube would acquire the whole of Asciano's Patrick container terminal business and 50 per cent stake in Australian Amalgamated Terminals.

Global Infrastructure Management, Canada Pension Plan and CIC would acquire Asciano's rail business

Asciano's remaining assets would be placed in a separate business to be established and owned by the non-Qube consortium partners, with the intention of selling those assets to a third party, with Qube possibly buying some of those assets subject to regulatory approvals.

The bid will require approvals from both the Foreign Investment Review Board and Australian Competition and Consumer Commission.

The consortium said they have taken steps when structuring the deal to minimise potential competition concerns.

Asciano's board responded by saying it is considering the new proposal and will provide an update in due course.

In the meantime, Asciano's directors have said they continue to unanimously recommend the revised Brookfield proposal submitted on November 9 in the absence of a superior offer.

Both Qube and Brookfield currently own around 20 per cent of Asciano's shares, making for a potentially interesting battle for control.

AustraliaPlus


 

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