Macquarie Asset Management moves on Qube with $11.6 billion bid as board signals support

A group of investors led by Macquarie Asset Management has lobbed an $11.6 billion takeover bid for ASX-listed port logistics operator Qube Holdings.

Investors sent Qube shares 19.4 per cent higher to $4.86 by Monday’s closing bell, just shy of the $5.20 per share takeover offer from Macquarie.

The offer was priced on a 27.8 per cent premium to the port operator’s closing price of $4.07 per share from November 21, with the giant price tag funded by external investors such as pension funds that are clients of Macquarie Asset Management.

Qube’s board said it intends to recommend that shareholders vote in favour of the deal, subject to multiple conditions. The group operates industrial ports and freight distribution services largely across southern and eastern states in Australia.

“The Proposal from Macquarie Asset Management is a reflection of the strength of Qube’s business model and our assets, and the quality of our people and culture,” said Qube’s chairman, John Bevan.

Broker suggests a full valuation

Broker RBC Capital Markets said it believed the offer was at a strong level or “full valuation” of Qube’s shares. The broker also noted the offer is at a 21 per cent premium to its own valuation of Qube at $4.30 per share.

The parties announced they have signed an agreement which grants Macquarie access to exclusive due diligence until February 1.

This means Qube’s board cannot solicit rival offers over the period, although fiduciary obligations mean it will consider any rival offers after the exclusivity period. Its board is being advised by investment bank UBS and law firm Allens.

Over the 12 months to June 30, Qube posted an adjusted net profit up 6.2 per cent to $288 million on sales that climbed 27.3 per cent to $4.46 billion. It paid total dividends of 9.8 cents per share over the last financial year to place the stock on a trailing yield of 2 per cent at Monday’s closing price. Shares had advanced 37.5 per cent over the past five years prior to the bid.

Macquarie is one of the world’s leasing investors in infrastructure globally across airports, toll roads, ports, gas networks and railways.

The deal is understood to be structured so its asset management unit acts as a lead manager in what is usually termed a syndicated investment. A spokesperson for the investment bank and asset manager declined to comment.

Its shares closed down 0.3 per cent at $193.48, versus a gain of 1.3 per cent for Australia’s benchmark S&P/ASX 200 index.