Asciano's assets still have a golden glow: Setchell

By Sam Collyer

The former head of P&O Ports said that while he would not comment on share price fluctuations or the business strategy adopted by Asciano in the three years it has owned Patrick and Pacific National, the assets were “tremendous”.
“They’re as good as anywhere in the world – fantastic assets,” Capt Setchell said.
“The ports, the rail, the landside businesses are triple-A.”
As chairman of Anglo Ports, Capt Setchell has been involved in bids to re-enter the Australian stevedoring market through a joint-venture with International Container Terminal Services Inc.
Capt Setchell would not be drawn on if it there was ever a temptation to buy Asciano’s assets during the stevedore’s financial woes of 2008 and early 2009.
Similarly, he would not comment on rumours that Hutchison Port Holdings had considered buying Patrick instead of competing for the third terminal at Port Botany.
Asciano ultimately survived in the same form, having turned down a $4.40 a share offer from TPG Capital and Global Infrastructure Partners in August 2008 that had valued the company at $2.9bn.
It later abandoned a subsequent plan to recapitalise by selling some of its most profitable divisions, such as Pacific National's coal business.
Shares in Asciano are now $1.70 on the Australian Securities Exchange, giving it a market capitalisation of more than $2bn.
Capt Setchell said any party that had been interested before had now missed the boat.
“I wouldn’t have sold at $4.40,” he said.
“I think it’s gone indefinitely but you never say never.
“Four years ago no one would have ever thought that Patrick, under [former managing director] Chris Corrigan, and P&O would ever be in different ownership.”
Asciano’s assets appeared “under-valued”, he said.

Source: Lloyd’s List Daily Commercial News – www.lloydslistdcn.com.au