Brookfield Asset Management to buy Australian logistics firm Asciano for $6.56 bn

18 Aug 2015


A consortium of investors led by Canada's Brookfield Asset Management yesterday struck a deal to buy Australian logistics firm Asciano Ltd for A$8.9 billion ($6.56 billion).

Asciano said in July that Brookfield had made a non-binding and conditional buyout cash and stock offer of A$9.05 per share and had raised its offer price to A$9.15 per share yesterday.

Brookfield is offering around 75 per cent in cash and 25 per cent in stock, and Asciano shareholders have the flexibility to slightly increase or decrease the stock component of the deal.

Third-party funds close to Brookfield Infrastructure Partners, sovereign wealth funds and large offshore pension funds, are expected to join the deal.

The transaction is subject to approval by the Australian Foreign Investment Review Board.

"This combination will provide Asciano the scope to leverage our industry leading expertise globally, and the financial capacity to take advantage of the myriad of growth opportunities in our sector," Asciano CEO, John Mullen said in a statement.

Brookfield Infrastructure CEO, Sam Pollock said that "combining Asciano's Australian container terminals with our existing assets in North America and Europe provides the foundation for a global container platform".

Asciano, which was demerged from Toll Holdings in 2007, is a freight logistics company, operating in railway freight and shipping.

The Melbourne-based company specialises in bulk and container shipping and transportation, with port and train operations across Australia. It has over 8,000 employees.

Goldman Sachs and Gresham Partners advised Asciano, while Citi and Macquarie Capital for Brookfield Infrastructure Partners.

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