By Rob McKay
Asciano’s monetisation strategy has been reflected in its share price as investors on April 20th, piled in, hoping for a bidding war for part or all of the company.
Asciano shares rose 33 per cent on April 20th after moving steadily upward since February and faith was rewarded yesterday, with the company confirming the interest, if not the numbers, of interested parties.
“The proposals include indicative offers for a range of different assets together with a number of transaction-related proposals which may result in the change of control and /or a recapitalisation of the group,”” the company said.
“”All the proposals are conditional and non-binding.””
The company is working on a shortlist to complete due diligence and provide final binding offers, with a decision to be made by the end of the financial year.
Interestingly, the Commonwealth Bank had raised its holding in Asciano to 10.7 per cent on March 27th before diluting it to 8.5 per cent on April 14th.
Meanwhile, an operating update revealed that vehicle storage and bulk transport and handling were the only parts of the company that had grown in the nine months to March.
Vehicle storage days had risen 48 per cent, net tonne kilometres for grain and industrial and bulk rail was up 22 per cent and bulk and general stevedoring by weight was up 11 per cent.
Grain volumes were up 70 per cent over last year, driven by a good NSW harvest.
Pacific National Coal’s net tonne kilometres performance rose 10 per cent due to demand and additional rolling-stock capacity in the Hunter Valley.
While the coal division recorded a monthly record in January topping a record December the performance in February and March faltered because of maintenance and weather impacts.
“”We expect the current robust operating environment for our coal and grain rail haulage businesses, in particular, to continue for the balance of the financial year and into 2009-10,”” chief executive Mark Rowsthorn said.
Against that, Patrick’s container lifts in the period fell two per cent from 1.468m to 1.434m.
Lifts in January and February were down 13 per cent with East Swanson in Melbourne continuing to bear the brunt with a 10 per cent reduction in the nine-month period while Brisbane and Fremantle statistics remained virtually unchanged.
Rowsthorn said there was some stability in March container volumes, but added that the short-term outlook remained challenging.
Pacific National Intermodal’s containerised freight net tonne kilometres performance was down 10 per cent despite express teu handling growing 18 per cent as a five per cent fall in teu numbers bit.
Steel volumes were down 20 per cent from their peak in 2007-08.
Source: Lloyds List Daily Commercial News www.lloydslistdcn.com.au
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