DataRoom AM: Asciano's China chat

Local freight logistics heavyweight Asciano appears close to a deal on its Patrick logistics business with a Chinese firm, but how much of a stake will it be prepared to give up?

Elsewhere, Regis Aged Care sets a high standard ahead of a flood of new listings in the fourth quarter, Quadrant Private Equity secures a significant stake in a fast-growing Canberra firm and 20 per cent of Apache Energy’s massive WA oil discovery is put on the market.

Asciano has made progress on talks with China Merchants Group over a stake in the $2 billion-plus Patrick Terminals and Logistics business, though a majority position remains unlikely to be offered, according to The Australian Financial Review. Instead, a joint venture deal between the two will be struck, potentially involving a minority stake for China Merchants.

The news comes after reports in July that China Merchants lobbed a bid of $1.1bn for a majority stake in Patrick. A 60-day Memorandum of Understanding was signed at the time in a hint that an agreement of some description was likely to be reached.

Meanwhile, Quadrant Private Equity has secured a 45 per cent stake in Canberra Data Centres, a firm that is tasked with looking after some of the government’s most secure data files, the AFR reports. The $140m deal comes just seven years after CDC was founded in a sign of just how quickly it has grown while capitalising on the trend to outsource data services.

In the IPO market, Centuria is again pressing forward with plans for a $300m float of a property trust that will house city offices and industrial properties. It is hoping to wrap up the listing before the end of the year, with Centuria set to hang onto a 10 per cent stake.

Elsewhere, McGrath Estate Agents is believed to be in discussions with JPMorgan over the possible float of its business on the ASX. No advisory appointment has been made just yet, with IPO discussions still at their early stage.

The new IPO candidates come on the scene as Regis Aged Care has successfully priced at $3.65 a share ahead of its October 7 listing. The pricing was near the top of the $3.25 to $3.85 a share range amid strong investor demand, with $485m raised on a valuation of $1.1 billion.

In energy, a 20 per cent stake in the highly prospective Phoenix South oil discovery has been put on the chopping block, with privately-owned Finder Exploration prepared to divest its position in Phoenix South and four nearby permits for as much as $200m. The discovery of Phoenix South, run by Apache Energy, made headlines around the world in August.

In media, a rumoured $275 million block trade by Oaktree Capital in Nine Entertainment will not go ahead as Oaktree believes the firm’s share price is undervalued, according to the AFR. As revealed in Business Spectator last week, Nine was hopeful Oaktree would stick around as the private equity firm saw “great potential” in the business.

Elsewhere, SAI Global’s shares retreated over 5 per cent yesterday as its planned $1.1bn sale appeared to fall over. However, while no official bids were put forward by the final deadline, the company remains adamant the auction is live.

Finally, Solomon Lew has dismissed reports stationery chain Smiggle could be spun-out of Premier Investments, while Westfield Corporation has made a play to enter the French market, holding talks with Immochan over a possible shopping centre development in Nice.