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Anglo Says Miners Planning $4.6 Billion Offer for Queensland Rail Assets
Anglo American Plc said a group of mining companies in Australia plans to lodge a formal bid for Queensland state’s coal freight network next week after making a revised initial A$5.1 billion ($4.6 billion) proposal last month.
“We’re conducting due diligence at the moment, we’ll be in a position next week to review the outcome of that,” Seamus French, the London-based company’s chief executive officer of coking coal, said today in a phone interview from Brisbane. “We then need to make a bid to the state government end of next week. That’s the milestone we’re focused on at the moment.”
The group including Anglo, BHP Billiton Ltd. and Peabody Energy Corp. are seeking control of the tracks as demand from Asian steelmakers expands and congestion crimps exports. The Queensland government has said it’s pressing ahead with the planned initial public offering of its QR National assets, including the coal tracks, in the fourth quarter.
The group, which accounts for 98 percent of Queensland’s export coal industry, made its first initial bid of A$4.85 billion in May. It also planned to spend A$2.05 billion on the railroads and has arranged a loan of A$1.35 billion for the bid, group Chairman Nick Greiner said May 26. Citigroup Inc. is advising the producers on their offer.
State-run rail provider QR Ltd., with assets worth A$12 billion, in July split into Queensland Rail, comprising passenger trains and services, and QR National, the nation’s largest transport and logistics business, including coal and freight train services, ahead of the planned IPO. The sale of the non-passenger assets may fetch A$7 billion, Queensland state Premier Anna Bligh said in June last year.
The government will initially retain 25 percent to 40 percent of the floated entity, it has said. While the IPO includes the rail track as well as rolling stock, the mining group only seeks to acquire the track.
To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net
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