© Reuters. An Aurizon coal prepare travels by means of the countryside in Muswellbrook, north of Sydney, Australia, April 9, 2017. REUTERS/Jason Reed/File Picture
(Reuters) – Aurizon Holdings, Australia’s largest rail freight operator, mentioned on Friday it can promote its East Coast Rail (ECR) enterprise to Magnetic Rail Group for A$425 million ($284.71 million) in money.
Aurizon mentioned in a press release the sale was in accordance with its settlement with the nation’s competitors regulator, following its $1.75 billion acquisition deal for One Rail Australia (ORA) that was finalised in July 2022.
The ORA deal is anticipated to assist Aurizon diversify from coal and add bulk capability, aiding its transition to greener power. Greater than a 3rd of Aurizon’s core earnings got here from coal in fiscal 2021.
“The (ECR) sale offers one of the best final result for Aurizon and its shareholders, delivering a robust sale worth and certainty in finishing the divestment,” mentioned Managing Director and Chief Govt Officer Andrew Harding.
In October, a consortium together with personal fairness corporations Oaktree Capital Administration and Brookfield bid for Aurizon’s ECR operations.
Gross sales proceeds from the ECR deal will likely be used to cut back Aurizon’s debt, whereas Magnetic Rail Group will assume ECR’s present debt.
Aurizon isn’t anticipated to make any capital tax features from the deal, as an enormous chunk of it, about A$125 million will likely be deferred for 12 months.
($1 = 1.4928 Australian {dollars})
