In a surprising turn of events, port and logistics operator Qube Holdings Ltd (ASX: QUB) has managed to snatch itself a 19.99% share in rail freight and logistics company Asciano Ltd (ASX: AIO).
Here's what we know so far
- Asciano is already "in play" having received a takeover offer from global infrastructure investor Brookfield.
- Qube has responded to Brookfield's takeover move by securing the support of two co-investors, Global Infrastructure Partners (GIP) and Canada Pension Plan Investment Board (CPPIB), to acquire a combined 19.99% strategic stake.
- The motivation behind the blocking stake is to carve up Asciano's business. Qube is interested in assets relating to stevedoring and container terminals, while GIP and CPPIB are interested in Asciano's Pacific National rail business.
What's next?
- Qube and its partners' acquisition of a 20% stake in Asciano will have thrown Brookfield's takeover plans into disarray. The takeover was already looking a little uncertain with the Australian Competition and Consumer Commission (ACCC) recently raising serious concerns about the proposal.
- While the ACCC could also have concerns over an acquisition involving Qube, it's possible the regulator may look more favourably on a breakup of Asciano involving multiple parties.
- Qube noted in its announcement that it may pursue a number of strategic options from this point. Those options include – not voting in favour of Brookfield's proposal, entering into discussions with Brookfield regarding a carve-up of Asciano's assets, and using its stake to seek Asciano board representation.
For shareholders in Asciano, the entrance of another interested party is good news as it creates a competitive bidding process which could lead to a higher final price being extracted from a successful acquirer. The downside is that Qube's 20% holding can also be used to completely block any takeover, which could see Asciano's share price tumble.
