Government sells shares in QR National


The Queensland Government has confirmed it will sell $1.5 billion worth of shares in QR National

Government sells shares in QR National
Government sells shares in QR National

October 8, 2012

The Queensland Government has confirmed it will sell $1.5 billion worth of shares in QR National.

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 says the 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 percent (821.5 million shares) to 16 percent (389.2 million shares).

"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," Nicholls says.

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.

"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," Nicholls says.

"The $1.5 billion sale represents a gain of around $400 million to Queensland’s bottom line since the initial public offer."

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

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