Toll Group divests Shenzhen property developer
Toll Group – the Asian-based integrated logistics solutions provider – has divested the majority of its 16.6% interest in Shenzhen Chiwan Petroleum Supply Base (SCP). Toll has also acquired the business assets of McLaughlin Freightlines (MFL) a specialist transport provider to the Australian poultry industry.
“Toll took the decision to sell down our minority stake in SCP as that business has been moving away from developing oil and gas supply base operations and into industrial property development and leasing,” said Toll Group’s managing director Paul Little.
“Our effective interest of 16.6% in SCP is a non-core asset for Toll. The transaction will generate cash proceeds of around AUS $50m which will further strengthen the Group’s balance sheet while having an immaterial impact on current year profit result.”
McLaughlin Freightlines is a family run business in the rapidly expanding poultry transport sector. It services Baiada, Turi Foods, McKeys and others in the sector.
Little said: “MFL is a highly strategic acquisition adding strength to our existing Toll Refrigerated, Toll SPD and Toll QRX rail businesses.”
MFL generates annual revenue of AUS $20m. The Group paid an enterprise value of approximately AUS $25m and expects the acquisition to be earnings per share positive in its first year.