Graincorp takeover bid

 

News article: Graincorp receives $2.4b takeover from Australian consortium

Listed bulk grain handler Graincorp has received a $2.

  ParkesHub Chief Commissioner

Could be interesting to see what develops. A couple of ex-Aurizon people involved.

https://www.theage.com.au/business/companies/graincorp-receives-2-4b-takeover-from-australian-consortium-20181203-p50jtj.html

" The bid is the first proposed investment by LTAP, which is led by Mr Shepherd, Huawei Australia director and former boss of rail haulage Aurizon Lance Hockridge, former Aurizon director Andrea Staines, and Chris Craddock, who has been the managing director of LTAP since 2016...."

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  Carnot Chief Commissioner

The plot thickens....  I wonder if they'll do some 'vertical integrating'?  i.e. Silos and trains owned by the same company?
  james.au Chief Commissioner

Location: Sydney, NSW
Technically GrainCorp is already in haulage with their fleet of 48cl Wink

I feel we need to wait and see with this bid to learn what it is about, and what investments they are proposing to make.
  bevans Site Admin

Location: Melbourne, Australia
Technically GrainCorp is already in haulage with their fleet of 48cl Wink

I feel we need to wait and see with this bid to learn what it is about, and what investments they are proposing to make.
james.au

The group obviously see some benefit in the acquisition and Graincorp as James says have experience not only running their own fleet of locomotives (not sure about the wagons) but they are happy to jointly invest in rail upgrades to their sites.

Geelong surely would benefit from some further upgrades?
  LancedDendrite Chief Commissioner

Location: North Haverbrook; where the monorail is king!
" The bid is the first proposed investment by LTAP, which is led by Mr Shepherd, Huawei Australia director and former boss of rail haulage Aurizon Lance Hockridge, former Aurizon director Andrea Staines, and Chris Craddock, who has been the managing director of LTAP since 2016...."
ParkesHub
"Long Term Asset Partners" sounds like a total oxymoron. Add Lance Hockridge into the mix and well... we'll wait and see how the plot thickens, but an initial sniff isn't portending good things.
  bingley hall Minister for Railways

Location: Last train to Skaville

The group obviously see some benefit in the acquisition and Graincorp as James says have experience not only running their own fleet of locomotives (not sure about the wagons) but they are happy to jointly invest in rail upgrades to their sites.

Geelong surely would benefit from some further upgrades?
bevans

You can kiss any of that goodbye if this mob of wannabe venture capitalists get hold of it Razz
  BrentonGolding Chief Commissioner

Location: Maldon Junction
"Graincorp noted that the deal hinged on LTAP securing a $3.2 billion loan from Goldman Sachs, as well as $400 million from Westbourne Capital."

The bid is $2.4Bn. So either they are planning some pretty major upgrades upon aquisition or they don't have a bean invested in the business.

And is it really Australian owned just because a bunch of Aussies own shares in the company? With a $3.2 billion facility on the line I would have thought that Goldman Sachs would own it!

BG
  Carnot Chief Commissioner

Interesting timing given the situation with rail contracts basically expiring:
https://www.afr.com/business/graincorp-counts-cost-of-takeorpay-rail-contracts-and-small-harvest-20180511-h0zy18
  james.au Chief Commissioner

Location: Sydney, NSW
Interesting timing given the situation with rail contracts basically expiring:
https://www.afr.com/business/graincorp-counts-cost-of-takeorpay-rail-contracts-and-small-harvest-20180511-h0zy18
Carnot
Makes sense.  Particularly when you've got SSR and QUBE (and possibly GWA and even Watco) who can haul, which didn't exist when PN took over the role after being the exclusive provider as the NSWGR/Freightcorp.  The take or pay contract was a huge risk transfer to PN when there were no alternatives and PN could dictate the market.  In a lot of ways, if Freightcorp was split in 2 before privatisation, many things might have looked different, including for grain markets.

Aurizon is now irrelevant though as they don't have take or pay with GrainCorp as far as I know.  Journo probably doesn't know this.

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