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Qube Holdings Ltd set to takeover Asciano Ltd today

ships in port

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.

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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.

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