Article: LNP Government to sell QRN shares in bid to cut state debt

[ozbob]

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LNP Government to sell QRN shares in bid to cut state debt

LNP Government to sell QRN shares in bid to cut state debt

    by: James McCullough
    From: The Courier-Mail
    March 27, 2012 12:00AM

QUEENSLANDERS will have another opportunity to invest in the state's rail group QR National when the new State Government sells some or all of its remaining holding, probably towards the end of the year.

Since QRN was listed in December, 2010, "retail" investors have made more than 50 per cent on their money after the shares rose from $2.45 on issue to $3.73 by yesterday afternoon.

Premier Campbell Newman made it clear during the election campaign that he would sell the Government's remaining 34.9 per cent stake, realising up to $3.2 billion to cut debt.

"We will take broad advice and we will at the right time use the proceeds from the divestment of those shares to pay down debt," he said during the campaign.

Although he has not announced a timetable, it was understood several bankers and stockbrokers had worn a path to the LNP headquarters before the election to discuss what would happen to QRN under a Newman Government.

Analysts anticipated some sort of decision toward the second half of this year.

"I would say they would do it sooner rather than later," one analyst said yesterday, referring to the fact that the new government could not sell its 851 million QRN shares until after August 23 when the company was due to release its 2012 financial results.

"I have not heard anything, but obviously with the change of government it would be interesting to know their view," RBS Morgans head of research Roger Leaning said.

A QRN spokesman yesterday said it was a matter for the Queensland Government.

"We noted Campbell Newman's statement during the campaign, but the timing and nature of the selldown is entirely a decision for the Government," the spokesman said.

A government spokesman yesterday said the priority was to get the new LNP administration installed and operating.

"It is not even on the radar at this point in time because there is just so much on the desk, with the transition to government," he said.

"So they really haven't even thought of QR National."

Most analysts and bankers contacted yesterday said they would not recommend the Government sell the whole slab of shares at once as that would affect the share price.

Wilson HTM director Steve Wilson said a lot of people were talked out of investing in the initial privatisation because of negative media reports so there would be strong interest this time around.

Mr Wilson said selling the stake in its entirety would only depress the share price and one way of offsetting some of that risk was to put a large amount of stock in the hands of the public.

"You have to get a balancing act of getting the best price for the Government but not fleecing new investors, as happened with Telstra Three," he said.

"The next sale needs to be heavily weighted to the mum and dad investors."

[mufreight]

Lie number one of Mr Newmans reign, Mr Newman said that there would be no asset sales under his government, is not selling the rest of this asset, Queensland Rail National which is currently the most profitable transport operation in this country, possibly a short term gain that will give long term pain.

[#Metro]

It would make sense if the government was concerned with making commercial profit, or holding a valuable asset, but governments don't need to do either - they can raise revenue directly from people by law, and they aren't profit-making corporations either. Government is not some organisation to go around collecting companies like some kind of memorabilia. There just is no incentive to hold these shares, and they should be sold off.

[O_128]

Lie number one of Mr Newmans reign, Mr Newman said that there would be no asset sales under his government, is not selling the rest of this asset, Queensland Rail National which is currently the most profitable transport operation in this country, possibly a short term gain that will give long term pain.

He did say he'd sell the rest, And this pays for another new road tunnel 

[Golliwog]

Lie number one of Mr Newmans reign, Mr Newman said that there would be no asset sales under his government, is not selling the rest of this asset, Queensland Rail National which is currently the most profitable transport operation in this country, possibly a short term gain that will give long term pain.

He did say he'd sell the rest, And this pays for another new road tunnel 

...or CRR?

[SurfRail]

Money wise it would be a great time to sell the shares as how much have they risen since it was floated? 40%
http://hfgapps.hubb.com/asxtools/Charts.aspx?asxCode=QRN&compare=comp_index&indicies=0&pma1=0&pma2=0&volumeInd=9&vma=0&TimeFrame=M2

The cost base for my shares is $2.29 as a result of the resident retail offer (otherwise $2.45).  When it got up to $4.00 the other day, it was an increase of around 75%.

I'm happy to keep mine for a bit longer and see where they end up, but I'm probably not going to be buying more in a hurry.