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Equity raising was close call: Asciano

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Transport infrastructure company Asciano Ltd says it was a close call between deciding to proceed with a multi-billion-dollar capital raising or the sale of all or parts of the company, to pay down debt.

But in the end, the board decided the $2.35 billion equity raising was the "most certain" proposal available, chief executive Mark Rowsthorn said on Sunday.

The ports and rail operator, which was spun out of Toll Holdings in 2007, last week announced it would raise $2.35 billion from the sale of new stapled securities to institutions and retail investors.

The deal, which was upsized from $2 billion following strong support from investors, had given the company an "enormous sense of relief," Mr Rowsthorn said.

Asciano chose the raising over other options it had been considering since last year, when it announced plans to try to sell, or monetise, all or part of its businesses to cut its $4.9 billion debt burden.

Mr Rowsthorn, who is also a director of the company, told ABC's Inside Business program the board had last Sunday June 14 "four or five" serious proposals to consider, before opting the following Monday to go ahead with the capital raising.

"They involved broadbased recaps (recapitalistions) for the company, and also sales of parts of the business, ports and coal," he said.

The capital raising, one of many pursued by listed corporations this year, was one of the options.

"It was a very close contest in the end... when you looked at keeping the business together, you looked at the certainty of the transaction, the proposal we have chosen is the most certain," Mr Rowsthorn said.

Under the raising, which is subject to approval by Asciano securityholders at a meeting on July 22, the new securities were offered at $1.10 each, a 40 per cent discount to Asciano's closing price of $1.83 on June 12. The stock closed at $1.405 on Friday June 19.

Institutional investors committed for $1.922 billion worth, including $341 million from an entitlement offer, $231 million from an unconditional placement and $1.35 billion from a conditional placement.

Asciano is also looking to raise $428 million from the fully underwritten retail component of the offer.

But the company may also raise an additional $194 million from a conditional placement to Mr Rowsthorn, who holds 10.92 per cent of the company's securities.

Mr Rowsthorn on Sunday said he was not getting any sort of special deal under the placement, noting that he would be "able just to keep my pro rata rights in the company".

"It's just a vote of confidence in me going forward in the company," he added.

Pressed on how he would come up with the $194 million needed to pay for the new securities, Mr Rowsthorn said it was a "personal issue and it's a work in progress."

Asked if he would participate in the offer in full he said: "To the extent that I can, subject to my personal finances and other personal things, but that's a work in progress.

"I really have to do the work on it, and I haven't got to it yet - it's been a busy week."

When the institutional and retail offer is concluded, Asciano expects to see its debt burden fall to "just south of $3 billion".

"And with our current earnings and the credit metrics, it puts us into a much more comfortable position going forward," Mr Rowsthorn said.