PATRICK half-owner Qube Holdings is not expecting changes to eventuate from co-investor Brookfield’s establishment of a new ownership consortium for the Canadian infrastructure specialist’s 50% share.
In its recent business update Qube acknowledged Brookfield Infrastructure had advised that it has entered into a binding sale agreement that, subject to completion occurring, will result in a new consortium owning Brookfield’s 50% interest in Patrick.
The new consortium comprises a new Brookfield controlled fund which will be the largest investor and which also includes some of Brookfield’s existing co-investors who will increase their existing interest in Patrick. The enterprise value of Patrick for this transaction is at a modest premium to the latest valuation of $6.6 billion which was disclosed in Qube’s FY25 Half Year results presentation.
Completion of the transaction is subject to customary regulatory approvals including by the Foreign Investment Review Board. There will be no change to Qube’s 50% ownership of Patrick as a result of this transaction.
Qube’s MD Paul Digney said: “Qube’s investment in Patrick has been an outstanding success, delivering over $2.5 billion of value to Qube’s shareholders including over $825 million of cash distributions since 2016.
“This is equivalent to an internal rate of return (IRR) of over 17% over our approximately nine-year ownership period. This return reflects the quality of this business which has been enhanced by the significant reinvestment that has gone into Patrick’s four terminals over this period to drive capacity and enhance productivity, which is expected to support continued long term earnings growth.
“This transaction falls within the exceptions that apply to Qube’s right of first offer and is not expected to result in any significant changes to the operation of, or outlook for Patrick, or the ongoing relationship between Brookfield and Qube with respect to Patrick,” Mr Digney said.
