Brookfield Says It Retains Asciano's Support for Takeover Offer

  • Current implied value of offer is about A$9.19 per share
  • Offer is superior to proposal by Qube, Brookfield says

Brookfield Asset Management Inc., Canada’s largest alternative asset manager, said it continues to have the support of Asciano Ltd. in its takeover bid for the Australian rail and port operator amid a rival offer.

Brookfield’s cash and stock proposal was equivalent to A$9.19 a share as of Nov. 20, the Toronto-based firm said Monday in a statement. Qube Holdings Ltd., along with New York-based Global Infrastructure Partners and Canada Pension Plan Investment Board this month made a A$9 billion ($6.5 billion) counteroffer for Melbourne-based Asciano.  

While the cash and stock offer by Qube and its partners is equivalent to A$9.25 a share, Brookfield said its bid offers a “superior outcome” to Asciano shareholders. Brookfield’s proposal has fully committed funding and isn’t dependent on acquiring 100 percent of Asciano’s shares, it said in the statement. Asciano’s board continues to support Brookfield’s offer in the absence of a superior proposal, the bidder said.

“The offer delivers a superior outcome to Asciano shareholders relative to other possible alternatives, including the Qube Consortium’s conditional non-binding indicative proposal,” Brookfield said in the statement.

Brookfield, which made the offer through its Brookfield Infrastructure Partners arm, this month bought a 14.9 percent stake in the Australian target and entered into an arrangement giving it a further 4.3 percent interest. It is seeking Asciano to gain control of the Pacific National rail business and the Patrick stevedoring businesses at ports in Melbourne, Sydney and Brisbane.

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