Queensland coal producers, including BHP Billiton Limited and Xstrata Plc has appointed Citigroup (NSE: C) to advice the companies on a bid for the state’s rail lines, as the Australian government forwards a planned initial share sale of the assets.
Credit Suisse Group AG, Goldman Sach, Merrill Lynch, Royal Bank of Scotland Group Plc and UBS AG have been named as the joint lead managers for the sale of QR Limited, slated for the fourth quarter.
The sale of non-passenger assets may bring as much as $7 billion AUD for the Australian state’s rail operations.
Queensland is selling public assets in order to prop up its financial situation after the recession cut the amount of revenue that it received from taxpayers. If the state keeps a 25% share in QR Limited and maintains the $7 billion AUD valuation of its freight network, the sale would be the largest stock offering in the country since Telstra Corporation’s offering in2006.
BHP Billiton, Xstrata Plc, Rio Tinto Group and Peabody Energy Corporation were among companies that attended a meeting in Brisbane this week to discuss the proposed bid to purchase Queensland coal producers. The group of producers are scheduled to meet again at the end of the month
