The competition favourite to buy Loscam, Kohlberg Kravis Roberts, is understood to have walked away from the $3bn-plus logistics business after the owners recut the deal.
Initially, the entire unit was thought to be on offer but now the understanding is that the owners are keen to only divest about 40 per cent.
Earlier, the understanding was that about three to four bidders had submitted offers in the UBS-run competition.
Working with KKR, which was considered the most likely buyer, has been Morgan Stanley, while Macquarie Asset Management was thought to have been interested and EQT may have bid.
Brambles, advised by Greenhill, only wanted the Southeast Asia division.
China Merchants purchased Loscam in 2010 for $US650m in a deal involving Credit Suisse and Deutsche Bank, and in 2018 it sold down a 55 per cent interest to CITIC Capital Partners and FountainVest.
During the process, it is understood that the various owners had differing views on what should be sold.
But parties had been told all of Loscam – the Australian and New Zealand operations, the Southeast Asia business and the Chinese operation that includes the Chep China it bought from Brambles – were on offer.
Management presentations were held with the prospective suitors and first-round bids came in during July.
It has been radio silence on the auction’s progress since.
Loscam fits the description of “core plus” infrastructure, where the assets have steady earnings streams.
It is believed that the annual earnings before interest, tax, depreciation and amortisation for the Australian, New Zealand and Asian operations – including China and Southeast Asia – are at least $200m.
Loscam’s owners were looking for a price somewhere between 13 and 15 times that number, which put the sale price at more than $3bn.
The logistics business describes itself as a trusted name in pooling and returnable packaging solutions for supply chains.
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