Australian port and rail infrastructure company, Asciano, has announced plans to simplify its corporate structure, which it claims will attract a broader range of investors, both domestically and internationally.
Asciano’s boards of directors and The Trust Company (RE Services), the responsible entity of the Asciano Finance Trust, have approved a conditional proposal to simplify the corporate structure by converting from a stapled security structure into a single holding company.
The Corporatisation Proposal, if approved, is reportedly the final step in transforming the company into a typical industry company within the top 50 entities listed on the Australian Securities Exchange.
According to Asciano, the Corporatisation Proposal is subject to a number of conditions including: the receipt of favourable judicial advice; necessary rulings from the Australian Taxation Office; and any necessary relief from the ASX and the Australian Securities and Investments Commission.
Once these conditions have been satisfied, it is expected that security-holders will be asked to approve the Corporatisation Proposal at Asciano’s forthcoming Annual General Meeting to be held on 27 October 2010. If approved, it is expected the proposal will be implemented in mid November 2010.
Under the proposal, the existing stapling arrangements will be terminated and security holders will exchange all of their units in the Asciano Finance Trust for shares in a newly incorporated wholly-owned subsidiary of Asciano Limited (NewCo).
Asciano Limited will then acquire all of the NewCo shares from the NewCo shareholders (i.e. former Asciano Finance Trust unit holders) in exchange for the issue to them of new Asciano Limited shares.
Add a comment