AZJ -3.56%: The rail freight operator has had a tough few sessions after announcing that it will buy One Rail Australia from Macquarie for $2.35b. This is a pretty typical reaction to a transaction where Macquarie is the seller, i.e. the market assumes that MQG is getting the better side of the transaction given that’s their bread & butter. AZJ are funding via existing debt facilities and the move does diversify AZJ’s freight volumes away from Coal.
MM views AZJ as cheap ~$3.50
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