AusRAIL, Market Sectors

QR float on track as industry bid collapses

<span class="" id="parent-fieldname-description"> The Queensland Government’s $4bn float of QR National will go ahead after a consortium of 10 coal miners last week abandoned their $5.1bn bid for Queensland’s coal railways. </span> <p>By Jennifer Perry</p><p>The Queensland Coal Industry Rail Group (QCIRG), headed up by Nick Greiner, reportedly said it was not able to satisfy its, or the government’s requirements for the bid.</p><p>QCIRG was on track to submit the bid as of late Wednesday last week. The bid collapsed the next day.</p><p>When its preliminary $4.85bn offer was upped to $5bn last month, QCIRG gained access to limited due diligence on QR National’s below-rail assets. According to <em>The Australian,</em> the miners were divided over the results of this.</p><p>Queensland treasurer Andrew Fraser said in a statement the government had taken the offer seriously, and thanked QCIRG for the “professional way” in which they conducted themselves.</p><p>“The state has invested significant resources in conducting this process, including the due diligence process,” Fraser said.</p><p>“The government is committed to boosting efficiency and competition on the rail network, and welcomes and shares the industry’s commitment to work constructively on this front.”</p><p>While Fraser said the government is confident of a successful float in the final quarter of this year and the government is reportedly in a position to begin pre-registration by the end of the month, some analysts expect the IPO may face difficult conditions, given the recent instability of global share markets.</p><p>The government and QR National chief executive Lance Hockridge have been adamant that that the the integrated above and below rail model was the best way forward for the company.</p><p>“I genuinely believe [this model] offers the best opportunity to grow our company and achieve our vision of becoming a world leading transport business,” Hockridge said.<br /><br />&nbsp</p>