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International infrastructure investment giant Brookfield is paying just over $8.9 billion split between cash and shares to buy out Australia's Asciano.
Asciano is one of the nation's major logistics firms, incorporating Patrick stevedoring, Pacific National and National Rail amongst other transport and goods handling operations.
Brookfield Infrastructure Partners Limited and several partners have announced an offer of $6.94 in cash and 0.0387 Brookfield Infrastructure units with a current value of around $2.21 per Asciano share.
Including Asciano's existing debts, the deal values the Australian company at around $12 billion.
Australian shareholders may receive an additional benefit, with a plan to convert some of the cash offer into a 90 cent special dividend that would give local investors a tax gain of up to 39 cents per Asciano share, bringing the total value of the offer to $9.54 a share.
Asciano's board is recommending the offer to its shareholders.
"After careful consideration of all the options available to the company, the Asciano board has unanimously concluded that a sale of the company at a significant premium to market value, and on terms that we think reflects fair value, is in the best interests of all shareholders," said the company's chairman Malcolm Broomhead in a statement.
Asciano said the offer represents a 39 per cent premium to the company's average share price over the five trading days leading up to Brookfield's initial takeover approach.
The deal is subject to Asciano shareholder approval and regulatory approvals - including from the Australian competition and foreign investment watchdogs.
The company's hope that deal will be completed by the end of this year.
This article first appeared on www.abc.net.au
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