Takeover target Asciano has recommended shareholders accept a $9.01 billion offer from a consortium led by local stevedore Qube Holdings after failing to attract a rival matching bid.
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Asciano had asked Brookfield to either match or beat Qube’s revised offer by February 15.
Accordingly, Asciano has now formally recommended the Qube Consortium bid.
Asciano and Qube have now entered into a bid implementation deed so that the Qube Consortium may acquire the issued share capital of Asciano that is not already owned by the Consortium.
Qube has yet to make a formal announcement as to the future of the Pacific National rail operations, which account for around two-thirds of Asciano’s revenues, but has previously indicated that the rail assets will be acquired by its consortium partners which include Global Infrastructure Management Australia, Canada Pension Plan Investment Board, and Beijing Shunrong Investment Corporation.
The latest proposal would see Qube acquiring Asciano’s Patrick container terminal business and a 50% interest in the ports business Australian Amalgamated Terminals.
Asciano will now apply to a court for orders to cancel the Brookfield proposal.
“The Brookfield bid will now be terminated”, the statement said, adding that Asciano has now signed binding sale documents with Qube. “And we look forward to working with Asciano to complete this transaction”, said Maurice James, the managing director of Qube. Qube has said the combination will double the size of the business and result in double-digit earnings.
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Asciano’s change of preference came seven months after it first endorsed Brookfield’s cash and scrip offer. Qube shares ended 4.5 cents, or 2.3 per cent, higher at $2.03.
