FREIGHT and ports business Qube Holdings is upping the stakes in the battle for large-scale rival Asciano, today launching a $9.02 billion takeover bid for the ports and rail operator.
Qube, which acquired about 20 per cent of Asciano shares last month to gain a blocking stake in the company, is now offering $9.25 a share in a cash and scrip deal - just above Canada's Brookfield which recently bid $9.22/share.
Qube is working in partnership with with the Canada Pension Plan Investment Board (CPPIB) and investor Global Investment Partners (GIP) to fund the bid which would involves it acquiring Asciano's Patrick container terminals in Sydney, Melbourne, Brisbane and Fremantle and associated stevedoring operations.
GIP and CPPIB would get Asciano's Pacific National rail freight operations, the largest private rail business in Australia.
Brookfield's rail ownership aspirations have been the focus of significant unease in the farm sector in recent months - and noted by the Australian Competition and Consumer Commission (ACCC) - particularly in Western Australia where the company already has long-term contracts to operate rail lines.
A statement from Qube said its proposal "represents superior value to the proposed takeover offer announced by Brookfield, particularly given the red light issues announced by the ACCC".
Qube, which is currently building a new grain loader at Port Kembla in NSW in competition with GrainCorp, is headed by former Patrick Ports boss Chris Corrigan, also a key player in the newly revamped and expanded Webster farming business and other agricultural sector interests.
The company said its proposal would allow Asciano shareholders to enjoy the benefits from combining Asciano's container terminals business with its own operations, while avoiding the risks associated with Canada-based Brookfield's operations.
Asciano is considering the proposal, but has continued to back Brookfield's $8.9b bid.
"The Asciano board remains committed to maximising value for Asciano shareholders and will continue to keep the market informed of any material developments," the takeover target said.
Brookfield had recently raised its own stake in the company to 19.2pc, having first made its takeover plans known in June.
It is now going directly to Asciano shareholders to increase its control to full ownership, rather than its initial proposed scheme of arrangement.
Qube said its plan was to acquire first class Australian terminal assets in a move that would be "genuinely transformational for Qube and the Australian transportation market".
Andrew Marshall
National agribusiness writer for Fairfax Agricultural Media.
National agribusiness writer for Fairfax Agricultural Media.
