PERTH (miningweekly.com) – The Queensland government would sell-down some 200-million shares in freight operator Aurizon, to raise A$806-million in cash.
Treasurer Tim Nicholls said on Monday the deal was a great outcome for Queenslanders, as the price the government achieved for the sale would see more funds available to pay down the state’s debt.
“The shares have been sold at a price of A$4.03 a share, being a premium to Aurizon’s volume-weighted average trading price on Friday and the five- and ten-day volume-weighted average trading prices,” he said.
“The government will also receive a 4.1c-a-share dividend from Aurizon on the shares that have been sold, which is payable on March 27. In other words, we have again fulfilled our commitment to achieve the best possible price for the sale of a significant proportion of our remaining shares in Aurizon.”
Nicholls noted that the A$806-million sale represented a gain of around A$300-million to Queensland’s bottom-line since the initial public offer.
On completion of the sell-down, the state government’s holding in Aurizon will reduce from 18.2% to 8.9%.
“Queensland taxpayers have benefited significantly from the patience shown by the Newman government in managing its holding in Aurizon,” Nicholls said.
“While the government will continue to review its residual 8.9% holding in Aurizon, we have no current intention to sell additional shares in the near term.”