Asciano Group, (AIO) has sold its remaining stake of about 48.7 million shares in Brambles Limited.
The shares have been sold at a price of $10.11 to a range of institutional investors and the proceeds will be used to retire existing debt, with the balance available for general working capital purposes.
Asciano’s managing director Mark Rowsthorn said, “The sale of our Brambles shares achieves two key objectives for Asciano. It allows us to retire a $406 million debt facility, improving our overall level of gearing and enhancing balance sheet flexibility.”
“Importantly, the sale also allows Asciano to focus on our core businesses and on enhancing securityholder value through continuing to apply our operating expertise and pursuing key growth initiatives within our existing operations.”
Asciano said it expected the impact of the Brambles stake on its 2007/08 full-year results to be a non-recurring loss of about $85 million before tax and funding costs.
Mr Rowsthorn commended, “It is obviously disappointing to have sold the shares at a loss. However, we believe that the strategic advantages to the company of divesting the Brambles stake outweigh the one-off impact on our results, particularly in the current market environment.”
Shares in Asciano gained 17 cents or 4.13% to $4.29. Brambles shares fell 11 cents to $10.33.
