Asciano Gets Takeover Offer From Brookfield Infrastructure

(RTTNews) - Australian ports and rail operator Asciano Ltd. (AIO.AX) confirmed Wednesday that Canada's Brookfield Infrastructure Group (BIP, BIP_U.TO) has made an offer to acquire the company for A$9.05 per share in cash and stock.

Asciano said that on June 26, 2015, it received a confidential, indicative, non-binding and conditional proposal from Brookfield Infrastructure Group. The proposed offer represents a 36 percent premium to Asciano's closing stock price of A$6.65 on Tuesday.

The consideration payable under the proposal would comprise a combination of cash as well as units in Brookfield's listed infrastructure fund, Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure Partners owns and operates utility, transport, and energy businesses. The company's Utilities segment operates a port facility that exports metallurgical and thermal coal mined in the central Bowen Basin region of Queensland, Australia.

Brookfield Infrastructure was spun off from Canadian property owner Brookfield Asset Management Inc. (BAM, BAM_A.TO) in 2008. Toronto-based Brookfield Asset Management is a publicly-owned alternative asset manager focused on property, renewable power and infrastructure assets. The company has about $200 billion in assets under management.

Asciano said it was in the interests of its shareholders to engage further with Brookfield on an exclusive basis to progress the proposal. The company added that talks are at a very early stage.

According to Asciano, there is no certainty that the proposal will result in an offer for the company. The company noted that the disclosure may result in Brookfield withdrawing its proposal.

"If the proposal does not proceed, the board believes that Asciano has a very attractive independent future and that the company is well positioned to continue to deliver strong growth," Asciano said in a statement.

The Australian Financial Review had reported earlier that Brookfield was in talks with Asciano with regards to its Patrick container ports division and had made a non-binding offer in recent weeks. The AFR also reported that Asciano had received an approach for the company in its entirety.

Meanwhile, Brookfield Infrastructure said in response to Asciano's announcement that its indicative proposal is non-binding and conditional. Further, the company said that exclusive discussions with Asciano in furtherance of a potential transaction are ongoing.

In Wednesday's trading on the Australian Securities Exchange, AIO.AX is trading at A$7.92, up A$1.27 or 19.02 percent on a volume of 7.43 million shares.

BIP closed Tuesday's trading on the NYSE at $44.63, up $0.12 or 0.27 percent on a volume of 151,789 shares.