QRN float looms

THE Queensland government’s planned float of Queensland Rail National appears likely to go ahead as QRN advertisements hit television screens.
QRN float looms QRN float looms QRN float looms QRN float looms QRN float looms

Queensland Rail.

Blair Price

Queensland Premier Anna Bligh said the float was due to start in the next 10 days, according to the AAP.

Yet she also said the decision to either sell part of QRN to the Queensland Coal Industry Rail Group or to float QRN would be announced soon.

The QCIRG consortium increased its bid for QRN’s rail infrastructure to $A5.1 billion a month ago but the Bligh government has not provided a clear response.

The state government expects QRN’s coal chain assets to reach a potential market cap of up to $7 billion after the initial public offering is made in the last three months of 2010.

Plans to publicly float its coal chain assets were announced last year, as part of a series of public asset sales to reduce debt by up to $15 billion and win back a AAA credit rating for the state.

QCIRG comprises of 13 Queensland coal producers.

Anglo American Metallurgical Coal, BHP Billiton, Yancoal Australia subsidiary Felix Resources, Jellinbah Resources, Macarthur Coal, Peabody Energy, Rio Tinto Coal, Vale Australia, Wesfarmers Resources and Xstrata Coal have all signed equity subscription agreements.

Aquila Resources, Ensham Resources and New Hope Coal Australia are supporting parties of QCIRG and can provide equity at a later stage.

The Australian Rail Track Corporation will act as the dedicated manager of the rail network should QCIRG’s bid be successful.