Australian freight logistics company, Asciano, has formally rejected a takeover offer by Canada’s Brookfield Asset Management Inc. after it failed to match a higher bid from Asciano’s rival Qube Holdings Ltd.
The Canadian company was given five days to up its A$8.9m ($6.36m) offer to match Qube’s A$9m ($6.44m) but failed to respond in the timescales.
A statement issued by Asciano said: “The Asciano board has considered the Qube Consortium proposal and the Brookfield offer and unanimously recommends the Qube Consortium proposal to Asciano shareholders.”
“The Brookfield bid will now be terminated,” it adds.
Asciano will now be liable for a break fee of A$88m to be paid to Brookfield Infrastructure.
Last summer, Asciano directors recommended shareholders accept Brookfield’s offer of A$9.15 per share, which would have led to the largest buyout by a Canadian firm in Australia.
But Australian logistics company, Qube Holdings, formed its own consortium with Global Infrastructure Partners, Canada Pension Plan Investment Board and CIC Capital Corporation to table a rival bid. The group acquired a nearly 20% stake in the company then offered to buy the rest for A$9.25 a share.
Source: Port Strategy