Rowsthorn reduces stake in Asciano

Mr Rowsthorn told the board that he had sold 40m existing shares and obtained a loan to help fund his 76.2m take-up under an entitlement offer.

He had said in May that he would take up the full entitlement but later, after last month's capital raising announcement, had said he had yet to decide how to fund it.

"In conjunction with the loan, I have entered into a collar arrangement over approximately 36.2m existing Asciano stapled securites for a period of between 12 and 18 months," Mr Rowsthorn said.

"The protection level under the collar is set at $1.10 and I will retain a portion of upside exposure to these hedged securities."

It is thought the transaction will reduce his control of the Asciano from almost 11% to about 5%.

According to Investec Private Bank, a collar loan provides low-cost term finance for shareholders, whilst protecting the value of a shareholding.

"The collar loan can be appropriate if you own a large holding in a single share, and wish to raise term liquidity," it said.