Toll Holdings has sold its New Zealand rail and ferry operations to the New Zealand government.
According to Toll’s managing director Paul Little, the disposal of the New Zealand rail and ferry operations will result in Toll retaining Toll Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations.
“While we had not been looking to sell the rail operating business back to the government, the sale has enabled us to re-focus our efforts on accelerating growth in our road and rail forwarding and logistics businesses, and this will include acquisition based growth,” says Little.
He adds that New Zealand remains a vital and attractive market for Toll, both from a domestic and cross-border viewpoint.
The sale involves payment of NZ$665 million for equity plus a six-year rent free period on existing premises, with Toll retaining the Tranzlink business.
Settlement is expected to occur by end-June 2008, with a management transition period.
The estimated book value of assets sold is NZ$430 million. Little said that the proceeds from the disposal will further enhance Toll’s capacity to aggressively pursue it acquisition-based growth strategy.
Source: Eyefortransport