Takeover target Asciano has recommended shareholders accept a $9.01 billion offer from a consortium led by local stevedore Qube Holdings after failing to attract a rival matching bid.
The Australian rail and ports operator had asked rival suitor, Canadian infrastructure giant Brookfield, to either match or beat Qube's offer by February 15. It switched its preference after Brookfield failed to submit a revised bid.
"The Asciano board has determined that the Qube consortium proposal is superior to the proposal from Brookfield. The board unanimously recommends the Qube consortium proposal to shareholders," Asciano said in a statement on Tuesday.
Qube, along with consortium partners GIP, Canada Pension Plan Investment Board and China Investment Corporation, has offered one Qube share and cash payment of $7.04 for every Asciano share held.
The consortium edged ahead in the long-running takeover battle after lifting the cash component of its bid last week. Its offer trumped a previous $8.9 billion bid from Brookfield.
Asciano said it has now signed a binding agreement with the Qube-led group, and will pay a break fee of $88 million to Brookfield as a result of the change in recommendation.
Under Qube's proposal, the company will directly acquire Asciano's entire ports business for $2.65 billion.
Qube's partners will acquire Asciano's rail business, while its remaining bulk, auto and ports services businesses (BAPS) will be sold to an entity owned by GIP, CPPIB and CIC for an enterprise value of $850 million.
Asciano handles nearly half of all container traffic entering or leaving Australia through its Patrick ports business, and also owns the Pacific National rail business.
The Qube and Brookfield consortiums each already hold a stake of about 20 per cent in Asciano.
Asciano shares were up 1.5 cents at $8.91 by 1021 AEDT, while Qube shares were 8.5 cents, or 4.3 per cent, at $2.07.
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