Pacific National moves into focus following Blackrock's GIP deal
Advisors were keeping an eye on Australia's largest freight rail operator, which is carrying a large amount of debt, long before its major shareholder GIP was acquired this week.
US asset management giant Blackrock's $US12.5 billion ($19.1 billion) acquisition of Global Infrastructure Partners (GIP) adds a fresh twist to a situation Australian investment bankers have been keeping a close eye on: the future of the country's largest private rail freight operator Pacific National.
Blackrock, the world's largest money manager this week struck an $18 billion deal to acquire GIP, which has exposures to a swathe of Australian assets including a 37% stake in Sydney Airport and interests in the Port of Brisbane, Port of Melbourne, and several LNG projects, including TotalEnergies' infrastructure for Santos' Gladstone development.
But its stake in Pacific National is arguably the most intriguing. Pacific National has $6.7 billion in debt and may need a new capital structure, according to a flyer from advisory group Houlihan Lokey circulated last year which was seen by Capital Brief.
Pacific National is headed by ex-Virgin Australia CEO Paul Scurrah. The AFR reported last year that GIP was looking to sell down some of its stake in the business.
