Johnson Winter Slattery has advised Magnetic Rail Group Pty Ltd (MRG) on the acquisition of One Rail Australia’s East Coast Rail (ECR) business from Aurizon.
MRG is a wholly owned subsidiary of Magnetic Infrastructure Group Pty Ltd, which is an incorporated 50/50 joint venture ultimately owned by M Infrastructure Group Pty Ltd and PT Asian Bulk Logistics (ABL).
The ECR business is One Rail Australia’s coal haulage business which operates in New South Wales and Queensland. It hauls approximately 30% of Hunter Valley export coal volumes and recently expanded its operations into Queensland.
Aurizon gave an undertaking to the Australian Competition and Consumer Commission (ACCC) to divest the ECR business as part of its recent acquisition of One Rail Australia.
Aurizon reported that, after expected completion adjustments, it will receive cash proceeds of approximately $425 million. MRG will also assume the ECR business’s existing debt facilities (which originally totalled $500 million).
Completion of the sale of the ECR business is subject to approval by the ACCC.
The Johnson Winter Slattery team was led by Partners Bruce Adkins, Stuart Clague and Simon Haddy, with assistance from Special Counsel’s Jarrod Wilksch and Tom Barrett and Associate Haerim Nam. “We were delighted to assist M Infrastructure and ABL with this high profile and high value acquisition. We look forward to working with the buyers as they grow the ECR business” Johnson Winter Slattery Partner Bruce Adkins said.
About Johnson Winter Slattery
Johnson Winter Slattery is an independent national Australian law firm with over 80 partners and 6 offices across Australia. We advise major Australian and international corporations and investment funds on their most challenging transactions and disputes across Australia and surrounding regions. Working closely with clients, knowing their business, and appreciating their commercial objectives, we tailor our approach to deliver cost-effective commercial outcomes.