💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

UPDATE 1-Australia's Qube seeks to block Brookfield's bid for Asciano with stake

Published 2015-10-29, 06:33 p/m
© Reuters.  UPDATE 1-Australia's Qube seeks to block Brookfield's bid for Asciano with stake
AIO
-
QUB
-
BN
-

* Qube, partners pick up 19.99 pct stake in late Thursday
raid
* Move could block $6.5 bln Brookfield's bid
* Qube seeks combination with Patrick terminal business
* Partners GIP, CPPIB interested in Pacific National rail
business

(Adds Qube, quotes)
SYDNEY, Oct 30 (Reuters) - Australian logistics firm Qube
Holdings Ltd QUB.AX said on Friday it and partners had bought
a near 20 percent stake in freight firm Asciano Ltd AIO.AX ,
seeking to block a $6.5 billion bid from Canada's Brookfield
Asset Management BAMa.TO .
Confirming a Reuters report on Thursday, Qube said it had
picked up a 19.99 percent stake, acting with Global
Infrastructure Partners and Canada Pension Plan Investment
Board.
Qube said it wanted to combine its logistics business with
Asciano's Patrick Containers Terminal business, while GIP and
CPPIB were interested in Asciano's Pacific National rail
business.
"Qube believes that any transaction resulting in the
combination of Qube with the Patrick Businesses, if it were to
eventuate, would be highly accretive to Qube shareholders in the
medium term," Qube said in a statement to the ASX.
Qube said its options now included voting against
Brookfield's bid, talking to Brookfield and/or Asciano about an
alternative proposal or holding its stake and seeking board
representation.
Brookfield's mooted takeover would have been the
largest-ever purchase of an Australian firm by a Canadian
company and Australia's biggest inbound deal since 2011.
Since the company requires 75 percent of shareholders to
vote in favour of the takeover, Qube's new holding was
essentially a blocking stake, a person familiar with the matter
told Reuters on Thursday. urn:newsml:reuters.com:*:nL8N12T2O7
Australia's competition regulator also raised antitrust
concerns earlier this month because the deal would have given
Brookfield Asciano's rail network and train operations in two of
the country's eight states.
The Australian Competition and Consumer Commission (ACCC)
had said it would give a final ruling by Dec. 17.
Qube closed on Thursday up 0.5 percent at A$2.20 a share on
Australia's ASX exchange. Asciano ended flat at A$7.56, compared
with Brookfield's A$9.15 offer price, reflecting investor doubts
the deal will be consummated.
Qube said it had funded a 6.3 percent interest in Asciano
via a deal with UBS UBSAG.UL , with the remaining interest
funded by GIP and CPPIB.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.