Asciano board reiterates backing for Brookfield deal

Broomhead advises shareholders to support takeover in the absence of a superior proposal

Asciano board reiterates backing for Brookfield deal
Asciano's board supports Brookfield until a better takeover offer is made.


Asciano shareholders’ Brookfield takeover vote will still be taken next Tuesday, Qube’s ‘blocking’ stake notwithstanding.

The Brookfield Infrastructure Partners (BIP) consortium’s bid is still has Asciano board backing and the company will list on the Australian Securities Exchange (ASX) under the BIP banner on January 15 if the vote is carried.

"The Asciano Board continues to unanimously recommend that you vote in favour of the Brookfield Scheme in the absence of a superior proposal," Asciano chairman Malcolm Broomhead says in a note to shareholders.

Broomhead adds that Asciano shareholders "should consider the further details regarding the Qube acquisition, including Qube’s stated intentions and rationale for the acquisition, which are contained in the announcement Asciano released to the ASX on 30 October 2015.

"The Asciano board is considering the implications of the Qube acquisition."

The note comes as Qube advised the ASX of financing and other details, running to 283 pages, of the deal, known as Project Bell, related to its 19.99 per cent stake in Asciano.

Its Form 603 ‘substantive shareholder’s notice’, advising of the stake purchase, repeats that Qube and partners Global Infrastructure Partners (PBPL) and Canada Pension Plan Investment Board (CPPIB) "do not support the current Brookfield scheme proposal, and confirm that they intend to vote against that proposal at the 10 November Asciano Scheme Meeting".

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