`Not enough market interest’ in FreightLink major stake

<p>FreightLink has temporarily scrapped plans to attract a major shareholder as it looks to existing shareholders to raise $360m of new equity.</p> <p>The Adelaide-Darwin rail operator began searching for a majority owner in May but said it was now looking at &#8220an alternative strategy&#8221 that involved existing shareholders and debt financiers.</p> <p>FreightLink chief executive John Fullerton told <em>Lloyd’s List DCN</em> this morning (Wednesday, November 1) that there had not been enough market interest in the idea.</p> <p>The rail operator would revisit the idea in about three years once most of its expansion was complete.</p> <p>&#8220We went out to the market because it seemed appropriate at the time because we really did want to restructure our debt,&#8221 Mr Fullerton said.</p> <p>&#8220The offers that came in were not attractive to existing shareholders.</p> <p>&#8220They chose to protect their equity by putting additional funds in.</p> <p>FreightLink’s volumes are steadily improving on the back of demand from bulk exports such as OM’s manganese ore from Bootu Creek.</p> <p>Mr Fullerton said other users &#8211 including Territory Iron’s Frances Creek iron ore mine, which will begin in mid-2007 &#8211 would lift this year’s 663,000 tonnes further.</p> <p>FreightLink expects to double its volumes in 2006&#4707.</p> <p>&#8220We are currently in discussions with GBS Gold International to assess the prospects of moving gold-bearing ore to their gold-processing plant at Union Reef, near Pine Creek,&#8221 he said.</p> <p>FreightLink could also begin transporting copper from South Australia’s Prominent Hill mine.</p> <br />