Qube Holdings Ltd set to takeover Asciano Ltd today

Qube Holdings Ltd (ASX:QUB) in trading halt pending capital raising and announcement of acquisition of Asciano Ltd (ASX:AIO)

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Qube Holdings Ltd (ASX: QUB) and takeover target Asciano Ltd (ASX: AIO) have both gone into a trading halt, pending the announcement of the takeover and split up of the ports, transport and logistics group.

Qube's announcement says the trading halt is so that the company can make an announcement in relation to an acquisition and capital raising.

Qube and its partners Global Infrastructure Management (GIP), Canadian Pension Plan Investment Board (CPPIB), CIC Capital Corporation, and Brookfield Infrastructure and its partners have offered $9.28 in cash per share for each Asciano share.

We outlined how Asciano would be split up between the partners when the announcement came out in February. Essentially, Qube gets 50% of Patrick Container Terminals business as part of a joint venture with Brookfield, and if the ACCC grants approval, Qube has the option to acquire 50% of the Australian Amalgamated Terminals (AAT) business. The rest of Asciano's businesses end up with CPPIB, GIP, CIC and members of the Brookfield consortium, including the Pacific National rail business.

Qube will need to raise capital to fund at least part of the $1,475.5 million price for its 50% share of Patrick – hence the announcement today of a capital raising. The Australian Financial Review reported that shareholders may be asked to tip in close to $450 million via a renounceable rights issue, priced between $2.00 and $2.10.

Qube's share price closed at $2.24 yesterday, while Asciano shares last traded at $8.87.

Foolish takeaway

It's been a tumultuous 10 years since Asciano was split off from Toll Holdings, but it has always seemed inevitable (at least to me) that Qube chairman Chris Corrigan would one day take charge of Patrick again.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »