Freight club

2 July 2015 By Quentin Webb

The Canadian investor wants to buy the Australian ports and rail operator for $6.8 bln. A solid 36 percent premium was enough to get Asciano’s board talking. So shareholders seeking a big sweetener may be disappointed. Part-payment in shares could be the main obstacle.

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Asciano, the Australian rail and ports group, is considering an A$8.8 billion ($6.8 billion) indicative takeover proposal from Canada’s Brookfield Infrastructure Group.

Asciano’s board decided “it was in the interests of its shareholders to engage further with Brookfield on an exclusive basis to progress the proposal”, the company said on July 1.

The proposal was pitched at A$9.05 a share, a 36 percent premium to Asciano’s previous closing price. Brookfield is offering a mixture of cash and units in its listed infrastructure fund, Brookfield Infrastructure Partners.

On July 2 shares in Asciano stood at A$7.85 by 3:25 a.m. GMT.

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