The Qube Holdings-led consortium, formed by Global Infrastructure Management, Canada Pension Plan Investment Board and CIC Capital Corp announced it has submitted a binding proposal for the acquisition of all of the issued share capital of Asciano Limited, not already owned by the Consortium.
The bid value is AUD 9 billion (USD 6.4 billion) and is considered a ‘superior proposal’ than Brookfield’s offer.
The proposed transaction will enable Qube to acquire Asciano’s Patrick container terminal business and 50% interest in Australian Amalgamated Terminals; GIP, CPPIB and CIC Capital to acquire the rail business of Asciano and the remaining Bulk, Auto and Ports Services businesses; and 50% interest in ACFS Port Logistics Pty Ltd to be sold to an entity to be established and owned by GIP, CPPIB and CIC Capital initially (BAPS HoldCo).
Qube believes that combining Ports with Qube under a single ownership and management structure will generate an estimated AUD 30–50 million per annum of benefits from synergies and business improvement projects over two to three years.
Qube’s investment consortium lifted the cash and shares indicative offer for Asciano higher than its previous approach and Canadian Brookfield’s offer. The announcement comes three months after the consortium bought a 19.99 percent stake in the Australian logistics giant and indicated a desire to break up the business.
Since the announcement of the submission of its proposal on 28 January 2016, the Qube Consortium has continued to engage with Asciano in relation to the merits of the proposed transaction.
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