PERTH (miningweekly.com) – Freight operator Aurizon has struck an settlement with Magnetic Rail Group to divest of the East Coast Rial (ECR) enterprise for A$425-million in money.
ECR is the coal haulage enterprise with operations in New South Wales and Queensland, which Aurizon acquired as a part of its acquisition of One Rail Australia (ORA). In accordance with Aurizon’s enterprise to the Australian Competitors and Client Fee (ACCC), the corporate needed to divest of the asset.
Along with the A$425-million buy worth, Magnetic may also assume ECR’s present debt services, which was initially totalled at A$500-million.
“The sale gives the perfect end result for Aurizon and its shareholders, delivering a robust sale worth and certainty in finishing the divestment,” mentioned Aurizon MD and CEO Andrew Harding.
“We’re happy to have secured the sale of the ECR enterprise and sit up for the transaction finishing in early 2023. We’ve got already efficiently built-in the ORA bulk and common freight belongings into our Bulk enterprise and are enthusiastic about each the standard of those belongings and the numerous alternatives for progress.”
Completion of the sale of ECR is topic to approval by the ACCC.
ECR has continued to function independently of Aurizon for the reason that ORA acquisition finalised in July 2022, with an impartial board and administration workforce. ECR will likely be categorised as a discontinued operation within the half yr monetary statements, with the web revenue after tax contribution proven individually to continued operations
