Aurizon said it was open to offers that increased shareholder value after it was reported to be discussing the sale of up to 49% of its Queensland coal rail network for up to A$4 billion.
The rail freight operator was responding to an article in the Australian Financial Review (AFR) newspaper that it had asked private infrastructure investors, hedge funds and insurers to take a highly confidential look at the Central Queensland Coal Network.
The company flagged the future of the 2670-kilometre network was under review at its half year results in February 2025, when it said it was reviewing its capital and ownership structures with the outcome too be reported this calendar year.
An Aurizon spokesperson said an active process was underway to ensure its capital, assets and operations were “optimally aligned to deliver value”.
“We always remain open to exploring genuine opportunities — strategic, operational or structural — that can unlock further value for shareholders while preserving the service quality and reliability our customers depend on,” the spokesperson said in a statement.
The AFR reported that a sale of a minority stake in the network or demerging it would be the biggest shake-up at Aurizon since it was privatised by the Queensland Government in 2010, with 49% worth between $3 billion and $4 billion.
Aurizon wanted to keep control but was also prepared to demerge it to shareholders, the newspaper wrote, citing people involved in the discussions who requested anonymity.
The company is offering a data room of limited due diligence materials, and Goldman Sachs is running the investor search.
Aurizon manages and operates rail infrastructure assets in Queensland, South Australia and the Northern Territory with more than 5,100 kilometres of rail track under management.
The Central Queensland Coal Network is Australia’s largest rail supply chain for export coal, with the track connecting customers from more than 50 mines to five export terminals at three ports.
Aurizon (ASX: AZJ) shares closed five cents (1.58%) higher on Friday at $3.21, capitalising the company at $5.62 billion.
Aurizon, formerly known as QR National, was listed on the Australian Securities Exchange in 2010.
