News story

Asciano takeover looms

Wednesday, 8 July 2015 ( #726 ) - Sydney, NSW, Australia
Asciano operates four divisions.
Asciano operates four divisions.
Analysts are expecting an announcement soon after Canadian investor group Brookfield Infrastructure Partners made an $8.8 billion offer for Australian multimodal company Asciano. According to the Australian Financial Review, the deal would be the 10th biggest takeover deal ever done in Australia if it is secured. Asciano is Australia's largest national rail freight and cargo port operator. For the year ending June 2014, the company reported revenues of $3.8 billion and a $720.3 million profit. Asciano operates four divisions: Pacific National Coal, the second-largest provider of coal haulage in Australia; Pacific National Rail, providing intermodal rail services and bulk haulage rail services throughout Australia; Terminals & Logistics, one of two major competitors in Australia providing container stevedoring services in the four largest container ports; and Bulk & Automotive Port Services which specialises in the management of bulk ports and the provision of port-related logistics at over 40 sites across Australia and New Zealand. Asciano has confirmed it received a non-binding and conditional proposal from Brookfield on June 26 to acquire the business for $9.05 per share in cash and stock. The company said it was in the interests of its shareholders "to engage further with Brookfield on an exclusive basis to progress the proposal" and added discussions are at a very early stage.