Toll Returns Rail to New Zealand Crown
Toll Holdings announced the sale of its New Zealand rail and ferry operations to the New Zealand Crown.
Toll Managing Director, Mr Paul Little said, “The disposal of the rail and ferry operations to the New Zealand Government, will give rail in New Zealand the opportunity to move forward in an environment with greater clarity and ability to better plan its development. We are very proud of our achievements in managing the rail assets and believe that the Crown is acquiring a well run business with a highly motivated workforce”.
“I am also pleased that the Crown has acknowledged the role that Toll has played in
improving the efficiency of rail freight movements within New Zealand.
“The sale will result in Toll retaining Toll Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations. We support the Government’s objective of boosting capital spending on rail and our New Zealand freight businesses will continue to be major users of rail capacity.
“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.
“New Zealand remains a vital and attractive market for Toll both from a domestic and cross border viewpoint” said Mr Little.
The sale involves payment of NZD 665 million for equity plus a six year rent free period on existing premises with Toll retaining the Tranzlink business. It is expected that settlement will occur by 30 June 2008 with a management transition period. The estimated book value of assets disposed of is NZD 430 million.
1 NZD = 0.756255 USD
Toll Holdings announced the sale of its New Zealand rail and ferry operations to the New Zealand Crown.
Toll Managing Director, Mr Paul Little said, “The disposal of the rail and ferry operations to the New Zealand Government, will give rail in New Zealand the opportunity to move forward in an environment with greater clarity and ability to better plan its development. We are very proud of our achievements in managing the rail assets and believe that the Crown is acquiring a well run business with a highly motivated workforce”.
“I am also pleased that the Crown has acknowledged the role that Toll has played in
improving the efficiency of rail freight movements within New Zealand.
“The sale will result in Toll retaining Toll Tranzlink, the company’s rail and road forwarding business, together with warehousing and contract logistics operations. We support the Government’s objective of boosting capital spending on rail and our New Zealand freight businesses will continue to be major users of rail capacity.
“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.
“New Zealand remains a vital and attractive market for Toll both from a domestic and cross border viewpoint” said Mr Little.
The sale involves payment of NZD 665 million for equity plus a six year rent free period on existing premises with Toll retaining the Tranzlink business. It is expected that settlement will occur by 30 June 2008 with a management transition period. The estimated book value of assets disposed of is NZD 430 million.
“Proceeds from the disposal will further enhance Toll’s capacity to aggressively pursue
acquisition based growth consistent with our Asian region growth strategy”, Mr Little said.
1 NZD = 0.756255 USD
