Why is Aurizon (ASX:AZJ) in the news today?

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 Why is Aurizon (ASX:AZJ) in the news today?
Image source: © Dedivan1923 | Megapixl.com

Highlights

  • Aurizon Holdings has delayed taking a call on the divestment of coal haulage business East Coast Rail.
  • The company had informed during its Annual General Meeting that it would decide on the same in November.
  • The company shared that work is still in progress, and now the decision is slated to be taken in December.

Transportation behemoth Aurizon Holdings Limited (ASX:AZJ) made headlines today (29 November 2022) when it came out with an update on its decision on the divestment of the East Coast Rail business. Aurizon stated that the work is still in progress and that it would be able to take a decision next month.

Meanwhile, the shares of the company were spotted trading 0.401% lower at AU$3.725 apiece at 1:24 PM AEDT on the ASX on Tuesday (29 November 2022).

Aurizon Holdings, in its Annual General Meeting (AGM) held on 13 October 2022, informed that it will most probably decide on the divestment of the East Coast Rail (ECR) business in November. Today, the company has shared that divestment-related work is still advancing on a dual-track process and that Aurizon will be able to decide on divestment by either trade sale or a demerger only in the next month (December).

Aurizon Holdings stated in the release that it would inform the market accordingly when it will arrive at a decision.

Australian freight operator Aurizon announced to acquire 100% of One Rail Australia in October 2022. The cash consideration for the same was AU$2.35 billion. Added to this would be around AU$80 million for acquisition and divestment-related fees. Aurizon stated that it would divest the East Coast Rail via a demerger or a trade sale, whichever will create a bigger value for shareholders.

Aurizon informed that the divestment is being progressed according to Aurizon's Undertaking to the Australian Competition and Consumer Commission (ACCC) as part of its acquisition of One Rail Australia (ORA).

The share price performance of Aurizon on the ASX:

The shares of the transport firm have shed 0.40% in the last five trading days on the ASX. In the last one month, the shares have moved up 2.90% but have lost 6.17% in the previous six months on the ASX.

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