Asciano knocks back a private equity proposal to acquire it, claiming the deal undervalues the company.
Transport infrastructure group Asciano has knocked back a private equity proposal to acquire it, claiming the deal undervalues the company.
In responding to the offer by TPG Capital and Global Infrastructure Partners, Asciano Company Secretary Fiona Mead says the directors decided against the deal, whch included a cash alternative of $4.40 a share under a scheme of arrangement.
“TPG Capital and Global Infrastructure Partners required that before any final binding proposal could be made, TPG and GIP needed to satisfactorily complete due diligence,” Mead says.
“The directors have considered the proposal and believe it undervalues the business and have decided not to agree to due diligence.”
TPG Capital and Global Infrastructure Partners submitted its proposal to acquire 100 percent of Asciano’s issued securities by way of a scheme of arrangement on August 4.
The bid was an unsolicited non-binding indicative proposal.
Mead says Asciano will be releasing its final results for the period ending June 30 on August 6.