It’s been a rocky week on the ASX for the export and logistics service provider. Here’s why
The post The Qube (ASX:QUB) share price is on a rollercoaster this week appeared first on The Motley Fool Australia. –
The Qube Holdings Ltd (ASX: QUB) share price is in the red today following its 4.7% gain yesterday.
Yesterday, the export and logistics service provider announced it is to acquire the Newcastle Agri Terminal.
While the market initially responded positively to the news, it has seemingly backflipped today.
Right now, the Qube share price is $3.31, 3.22% lower than its closing price yesterday.
Let’s take a closer look at this week’s news from Qube.
Qube’s new acquisition
The Qube share price has had a turbulent time on the ASX this week following news of the company’s latest acquisition.
Yesterday, the company announced it will be acquiring the Newcastle Agri Terminal for $90 million. The terminal is a grain exporting hub.
According to Qube, it’s positioned to take advantage of northern New South Wales’ grain production, which sees 4.8 million tonnes of grain produced in an average year.
The facility comes with around 60,000 tonnes of silo storage, modern rail receival infrastructure, road discharge facilities, and the capability to load 2,000 tonnes of grain per hour.
The $90 million needed for the acquisition will come from Qube’s currently undrawn debt facility.
The transaction is expected to be completed by the end of this month.
Commentary from management
Qube’s managing director Paul Digney commented on the news sending the company’s share price loopy this week, saying:
The acquisition of [Newcastle Agri Terminal] will further strengthen Qube Agri export bulk service offering to growers and traders the ability to now ship from Newcastle…
The addition of this quality asset to the Qube Agri capability will ensure customers in the northern draw zone can benefit from an efficient export terminal.
Qube share price snapshot
Despite today’s dip, the Qube share price has been performing well on the ASX lately.
It has gained 10% year to date. It is also currently 25% higher than it was this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.