Statement: Government's QRN deal delivers for Queenslanders

[ozbob]

Treasurer and Minister for Trade
The Honourable Tim Nicholls

Government's QRN deal delivers for Queenslanders

Monday, October 08, 2012

The Newman Government has today confirmed it will sell $1.5 billion worth of shares in QR National in a deal which will maximise benefits for Queensland taxpayers.

The deal involves a 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.

Treasurer Tim Nicholls said the deal was a great outcome for Queenslanders as the price the Government achieved for the sale will see more funds available to pay down a greater proportion of Labor's debt.

"The LNP 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.

"The deal announced today does just that.

"Importantly the $3.47 price per share represents a premium to QR National's 3, 5, 10, 30, 60 and 90 day volume weighted average price of shares (VWAP), traded on the Australian Securities Exchange ("ASX") and equivalent to the last sale price.

"In other words, we have fulfilled our commitment to achieve the best possible price for the sale of a significant proportion of our remaining shares held post listing.

"An analysis of secondary sell downs above $500 million in recent years shows today's trade as the only trade since 2009 that was done at a premium to the 5-day VWAP prior to the sale.* (refer to attached table)

"The $1.5 billion sale represents a gain of around $400 million to Queensland's bottom line since the Initial Public Offer."

Mr Nicholls said fees for the deal had also been kept to a minimum.

"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 Queensland Government's remaining stake in QR National was now valued at around $1.35 billion as a result of today's announcement.

On completion of the selective buyback and cornerstone placement, the Government's holding in QR National will reduce from 33.9% (821.5 million shares) to 16% (389.2 million shares).

Mr Nicholls said the Newman Government continues to be a significant shareholder in QR National.

"Whilst the Government will continue to review its investment in QR National, we have no current intention to sell any of our remaining shares in the near term," he said. 

Proceeds from the selective buyback are subject to shareholder approval at the QR National Annual General Meeting, now expected to occur on 21 November 2012. Proceeds from the cornerstone placement are anticipated to be received on Thursday 11 October 2012.

QR National announced details of the sale to the ASX this morning.

[ENDS] 8 October 2012

[ozbob]

Couriermail --> Newman Government sells off another $1.5 billion stake in QR National

[nathandavid88]

Not really unexpected. From memory both the ALP and LNP have long held to sell down the ~34% stake over time.

Interesting how the Courier Mail story doesn't make much note of how it is only half of the Government's stake that is being sold. Had I not read the Govt press release first, I'd be a little confused.

[ozbob]

Brisbanetimes --> Newman to sell $1.5bn in QR National shares

[ozbob]

QRN = Queensland Rural No?

QRN is just not interested in doing much for rural Queensland.

I hope the present limitation of Queensland Rail not being able to operate general freight services can be changed.  QRN is just not interested ...

For a start freight back on the Westlander and Inlander would be a good beginning ...

[petey3801]

For a start freight back on the Westlander and Inlander would be a good beginning ...

Might not be a Westlander to put freight on for much longer... 

[ozbob]

Queensland Times --> MP accused of flip-flop on QR

[nathandavid88]

QRN = Queensland Rural No?

QRN is just not interested in doing much for rural Queensland.

I hope the present limitation of Queensland Rail not being able to operate general freight services can be changed.  QRN is just not interested ...

For a start freight back on the Westlander and Inlander would be a good beginning ...

After the mineral boom starts to die, I think QRN might become very interested in operating general freight services...the sustainability of their business might end up depending on it!

[ozbob]

Brisbanetimes --> Newman has bet each way on QR National

[mch]

What does it really deliver?

Remember that the funding for the electrification came from the profits of the freight and coal areas.

Passenger services will now be a continuing loss making area.

What will happen next?

Will they do the same as Victoria?

Let it out to private companies who will try to make a profit by cutting back on maintenance and putting the public at risk.

We are already seeing it by the number of failures:

Track, signalling and units.

Didn't we just have a very long investigation after the fiasco with the failed overhead at Milton? It wasn't cheap, and what has it proved?

And part of the reason for the failure was a clamp, which was one of the early ones installed. It was put in upside down and incorrectly terminated.

And just to think, there are these clamps about every kilometre or so.
I haven't seen any of them fixed.

If you take money out of the system, maintenance does not get done and things fall apart.

Caboolture line for example:

Continuing failures due in part to track problems and the upgrade work not being properly completed.

.

[Fares_Fair]

G'day mch,

I understand that all clamps on the network were checked after the clamp failure ( I think that is from the Audit report, I know I read it in a document somwewhere)
No reports on whether any other clamps were incorrectly installed.

[HappyTrainGuy]

It proved that it was the first time a wedge clamp had ever failed due to incorrect instillation. I'm pretty sure it doesn't matter if it was installed upside down or not. It was the contact wire that failed as it was bent too much which forced the wedge up in the clamp and frayed the contact wire. As far as I know the CBD line has been checked all of its clamps with overnight inspections/weekend shut downs. Inner city has had some inspections. Futher out along the network inspections are still contiuning due to the amount of time it takes to check each clamp. Power has to be turned off, red boards go up, isolate that section and so on. Sections of the Cleveland and parts of the Beenleigh line have already been checked. As too have parts of the Caboolture line recently. Richlands won't have inspections as use a different type of clamp. Haven't heard much about the Ipswich/Doomben/Airport/Shorncliffe lines.