Takeover bid for Asciano

Asciano Limited, the Australian freight and logistics giant and owner of stevedoring heavyweight Patrick and rail freight specialist Pacific National, has announced it has received a takeover bid from multinational behemoth, Brookfield Asset Management.

Brookfield is seeking to acquire 100 per cent of Aciano's stock at an implied value of $9.05 per share, representing a 36 per cent premium on the Australian company's last closing price in a deal totalling $A8.8 billion.

In response to media speculation Asciano issued an ASX media release today (July 1) confirming the bid, but says it's far too early to say whether or not the deal will go ahead.

"Asciano confirms that on 26 June 2015 it received a confidential, indicative, non-binding and conditional proposal from Brookfield Infrastructure Group to acquire Asciano at an implied value of $9.05 per share in cash and scrip, by way of a scheme of arrangement," the ASX release states.

"The Board of Asciano, together with its advisors, concluded that it was in the interests of its shareholders to engage further with Brookfield on an exclusive basis to progress the proposal."

Asciano says that at this stage there's no certainty regarding whether or not the deal will result in a takeover.

"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," the statement concludes.

Brookfield Infrastructure Group is a Canada-based but multi-national concern with interests primarily spanning utilities, transport, energy and communications infrastructure.

In 2014 the company reported a net income of $US184 million (approximately $A238 million). At the close of that calendar year the company's CEO, Sam Pollock, said he anticipated a busy year to come.

"2015 is shaping up to be potentially one of the most active periods for infrastructure investors," he said.

"The trends we are seeing in the global economy could provide opportunities for step-change growth for our business."

A degree of that growth could now potentially stem from its proposed Asciano takeover, although Brookfield too has been quick to dampen the market's rampant speculation.

"There can be no assurance that a transaction will be completed or of the final terms thereof," states a release on the company's website.

"Brookfield Infrastructure does not intend to provide further updates in relation to the proposal until appropriate."

It's the third major deal to rock the freight and logistics world – and Australia in particular – this year. In February Japan Post announced its intention to acquire Australia's Toll Group, in a deal worth a reported $A6.5 billion. That deal went through, with Japan Post officially taking the reins from the end of May.

Then, in April, Netherlands-based TNT Express agreed to a takeover from US-based FedEx, in a deal worth $A6.2 billion.

Now Asciano, which itself was part of Toll Group up until 2007, could follow its former parent in seeing its ownership head offshore, should the deal eventually be closed.

Asciano has said it will update its shareholders on the offer's progress "as appropriate".