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NRC sale: good outcome for taxpayers.

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31 January 2002 08/02

NRC Sale - Good Outcome For Taxpayers The Commonwealth Government will receive proceeds of around $220 million for the sale of its 68% shareholding in National Rail Corporation Limited (NRC).

Minister for Finance, Senator Nick Minchin said the amount substantially exceeded the Government's budget estimate for the sale and represented an excellent outcome for taxpayers.

Earlier today, the Commonwealth, NSW and Victorian Governments announced that NRC and FreightCorp will be sold to National Rail Consortium Pty Ltd, led by Lang Corp Ltd and Toll Holdings Ltd, for a total transaction value of $1.172 billion.

This comprises $936 million for the purchase of the companies, $118 million for the assumption of net debt and a $118 million commitment to the NSW Broadacre Project.

The NRC proportion of the $936.0 million net proceeds is $328.3m, and, in addition, the new owner will assume around $126 million in NRC debt. The Commonwealth owns approximately 68 per cent of NRC and will therefore receive around $220 million in sale proceeds.

Media contact: Jennifer Eddy 0262777400