GOVERNMENT BUYBACK MAKES QR NATIONAL SHARES SOAR
8 October 2012,
THE Queensland Government’s plan to sell $1.5 billion of QR National (QRN) shares today has sparked an instant reaction to the ASX-listed freight company’s share price.
QRN shares rose nearly 5 per cent to $3.64 per unit, valuing the Newman Government’s remaining stake at about $1.35 billion.
“The $1.5 billion sale represents a gain of around $400 million to Queensland’s bottom line since the initial public offer,” says State Treasurer Tim Nicholls (pictured).
The deal involves selling more than $1 billion of shares via a selective buyback to QRN plus a $500 million placement to cornerstone investors.
QRN managing director and CEO Lance Hockridge reveals the buyback will help expedite capital management initiatives, provide greater certainty than the existing on-market buyback program and bring more immediate earnings per share to shareholders.
“The selective buyback is not expected to inhibit QRN’s participation in available growth opportunities in the future,” he says.
The on-market buyback will be suspended pending shareholder approval of the proposed selective buyback and, if the selective buyback is approved by shareholders, it will replace the on-market buyback.