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

 

The deal will see the Government sell $1 billion worth of holdings via a selective buyback to QR National and a $500 million placement to a small number of cornerstone investors.

 

State Treasurer Tim Nicholls said the deal would allow the Government to pay down a significant proportion of the state’s debt.

 

“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," Mr Nicholls said.

 

“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.

 

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