Newsletter #359 (View other news stories)
Toll sells NZ rail, buys trucking company
WHANGAREI, Northland, New Zealand
Thursday, 8 May 2008
Logistics giant Toll Holdings this week announced the sale of its New Zealand rail and ferry operations to the New Zealand Government.
The sale involves payment of NZD665 million for equity plus a six-year, rent-free period on existing premises. Toll will retain the Tranzlink business.
"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," says Toll managing director Paul Little.
"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.
"Proceeds from the disposal will further enhance Toll’s capacity to aggressively pursue acquisition-based growth consistent with our Asian region growth strategy," Little says.
Yesterday Toll boosted its presence in New Zealand by announcing it had signed a conditional purchase agreement for trucking company United Carriers, which has an annual turnover of NZD50 million.
United Carriers employs 360 staff and has a fleet of 220 trucks. It has businesses in a range of logistics sectors, including general freight, livestock, logging, warehousing and international freight forwarding.
|
CURRENT NEWS
|
