Report: TPG, GIP refuse to give up on Asciano

TPG and Global Infrastructure Partners have reportedly offered to invest more than A$1bn in the Australian ports operator through the purchase of convertible notes, after their initial buyout bid for the company was rejected.

Three months after having its buyout bid for Australian port operator Asciano rejected by the company, a consortium composed of TPG and Global Infrastructure Partners now wants to buy more than A$1 billion ($670 million; €530 million) worth of convertible notes in the company, according to a report in the Australian Financial Review, Reuters noted.

Asciano is likely to reject the offer as it is already looking at other means to raise capital, according to unnamed sources cited in the report. It turned down TPG’s and Global Infrastructure Partners’ A$2.9 billion bid to acquire the company in August and did not agree to due diligence, saying that their offer was too low and “undervalued the business”.

The company had earlier revealed to the Australian Stock Exchange that it had received a non-binding proposal from the consortium to buy out all its securities. TPG and Global Infrastructure had offered A$4.40 a share in August, while at the time of press Asciano’s shares were trading at A$2.11.

Asciano owns Pacific National rail operations and Patrick ports. Together the two businesses provide a wide range of transportation services including bulk haulage for coal, grain and industrial products and the operation of container terminals in four Australian ports.

All the parties to the transaction refused to comment.