Council needs to fast-track rail before gridlock
First train ride re-enacted for Queensland Rail's 150th birthday
Nambour a better option: Woombye anti-rail stabling group
South west Queensland pushes for more rail services for cattle
Tilt Trains set for a major overhaul
Ipswich celebrates heritage at Rail Museum on Open Day
Two rail lines earmarked for northern Australia
The $55.8 million dual gauge rail line from Acacia Ridge to Bromelton remains unfinished
Police investigate if fallen powerlines on Gold Coast train line work of vandals
Sourcing critical railway upgrade funding needs cool heads and smart solutions
The Queensland government will sell a $1.5 billion stake in QR National, with the rail-freight company planning to buy back two-thirds of the shares.
The government said the deal involved the sale of $1 billion of shares via a selective buyback to QR National and a $500 million placement to a small number of cornerstone investors.
QR National has offered to buy back the $1 billion share package back for $3.47 a share, in line with its closing price last Friday.
The news sent QR National shares up 5.2 per cent to $3.65 in early trade, as the company's shares had been under pressure not only from a weak outlook for the coal market but also on anticipation of a big selldown by the state.
The sell-off will reduce the government’s stake in QR National from 33.9 per cent, to 16 per cent.
QR National had already announced a buyback of up to 10 per cent of its shares in August, and has so far bought $50 million worth of shares.
It said the buyback of the state's shares would replace the on-market buyback, if approved by shareholders in November.
Today's sale would reap a $400 million gain for the state, which privatised QR National two years ago at $2.55 a share.
State treasurer Tim Nicholls said it was a great outcome for Queenslanders, as the price the government achieves for the sale will see more funds available to pay down Labor’s legacy of debt.
‘‘The LNP (Liberal National Party) opposed the former Labor government’s decision to sell QR National. However, we now have an obligation to Queenslanders to achieve the best possible outcome from the situation we inherited,’’ Mr Nicholls said in a statement this morning.
‘‘The deal announced today does just that.’’
Mr Nicholls said the $1.5 billion sale represented a gain of around $400 million to Queensland’s bottom line since the initial public offer.
‘‘We have been able to secure the best deal for Queenslanders in terms of the total sale figure and minimising the fees incurred,’’ he said.
Mr Nicholls said the government continued to be a significant shareholder in QR National.He said the government would ‘‘continue to review its investment in QR National’’ but added: ‘‘We have no current intention to sell any of our remaining shares in the near term’’.
This article first appeared on www.smh.com.au
About this website
Railpage version 3.10.0.0037
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest is © 2003-2020 Interactive Omnimedia Pty Ltd.
You can syndicate our news using one of the RSS feeds.