Brookfield proposes Asciano takeover
Brookfield Infrastructure Partners LP has entered discussions with Australian port & logistics operator Asciano Ltd for a takeover priced at $A8.83 billion.
The figure on the table was $A9.05/Asciano share, in a mix of cash & scrip, but both parties said it was indicative, non-binding & conditional. Brookfield approached Asciano last Friday and Asciano disclosed the discussions on Tuesday.
Asciano said its board considered it was in the interests of its shareholders to engage further with Brookfield on a confidential basis to progress the proposal, adding that discussions were at an early stage and the offer still required approval from Brookfield boards. It said there was no certainty the discussions would result in an offer, or what the terms of that offer might be.
Canadian property giant Brookfield Asset Management Inc spun the international infrastructure business off in 2008 but retained management of it. Brookfield Infrastructure Partners is listed in New York & Toronto, like other Brookfield entities. Across all entities, Brookfield manages $US200 billion of assets.
It controls Brookfield Office Properties Inc, which owns, manages & develops property in North America & Australia; Brookfield Canada Office Properties, a real estate investment trust; and 2 of the biggest retail property owners in the US, General Growth Properties Inc & Rouse Properties Inc.
It also owns Australian construction company Brookfield Multiplex, which has expanded into Canada, Europe, India & the Middle East.
Asciano decribes itself as a supply chain manager with a transport infrastructure portfolio. It was formed through the merger of port stevedoring & container port operator Patrick and logistics business Toll, and operates in Australia & New Zealand.
Asciano’s share price rose 16.8% ($A1.12) yesterday to close at $A7.77.
Attribution: Asciano, Brookfield