Canadian Investment Review

CPPIB and Brookfield compete to acquire Australian company

Written by Jennifer Paterson on Thursday, January 28th, 2016 at 11:09 am

807208_kangaroo_signThe Canada Pension Plan Investment Board (CPPIB) and Brookfield Infrastructure Partners are in competition to acquire Australian logistics and transport company Asciano.

The company announced Thursday that it had received a proposal from Qube Holdings Ltd., Global Infrastructure Partners, CPPIB and CIC Capital Corporation to acquire 100% of the issued capital of the company.

According to a news release from Asciano, the offer comprises A$6.97 cash and one Qube share per Asciano share, which has an implied value of A$9.17 per Asciano share based on Qube’s volume weighted average price for the 30 trading days to Jan. 25, 2016 of A$2.20, and A$9.08 per Asciano share based on Qube’s closing price of A$2.11 on Jan. 25, 2016.

“The proposed transaction represents superior value to the conditional scheme of arrangement and conditional takeover offer by Brookfield Infrastructure Partners, currently valued at A$8.77 per Asciano share,” the company said in a statement.

While the Asciano board is considering the new proposal, it said it continues to unanimously recommend the Brookfield proposal, which was announced on Nov. 9, 2015.

 

Copyright 2017. Canadian Investment Review. All Rights Reserved.