bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Reuters

Australian freight company Asciano Ltd said on Wednesday that it was in discussions with Canada’s Brookfield Infrastructure Group after the Canadian firm made an informal approach to buy it for A$8.8 billion (US$6.78 billion).
Brookfield made an indicative, non-binding and conditional proposal to buy all Asciano’s shares for A$9.05 per share, Asciano said in a statement.
The proposed offer represents a 36 per cent premium to Asciano’s closing price of A$6.65 on Tuesday. The shares were in a trading halt because of the announcement.
If Asciano accepts Brookfield’s cash and shares proposal, it will be the seventh-largest inbound takeover of an Australian company and the second-largest by a Canadian firm, according to Thomson Reuters data.
It would also make the logistics industry the most sought-after for M&A deals in Australia this year. In January, Asciano’s former parent company, Toll Holdings, agreed to a A$6.5 billion buyout by Japan Post.
In its statement, Asciano said Brookfield approached the company with its cash and scrip proposal on June 26.
The Asciano board and its advisers "concluded that it was in the interests of ... shareholders to engage further with Brookfield on an exclusive basis to progress the proposal", the statement said.
Discussions are at an early stage and depend on clearing several major steps before proceeding to a formal takeover bid, including allowing Brookfield to complete due diligence and final approval by the investment committee of Brookfield’s parent company Brookfield Asset Management Inc.
 


Australia's Asciano in talks over Brookfield's AS$8.8 billion approach 

The  S&P/ASX200 index in Australia, where freight company Asciano is considering an offer from Canada's Brookfield Infrastructure Group. Photo: AFP

Business

Companies