May 05, 2008 FREIGHT transport firm Toll Holdings has sold its...

May 05, 2008
FREIGHT transport firm Toll Holdings has sold its New Zealand rail and ferry operations to the country's government for $NZ665 million ($555.35 million) to focus on its goods forwarding business.

"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," Toll managing director Paul Little said.

"We support the government's objective of boosting capital spending on rail."

Toll will retain Tranzlink, the company's rail and road forwarding business in New Zealand, and would continue to be a major user of rail, Mr Little said.

The government will pay Melbourne-based Toll $NZ665 million for equity plus a six year rent free period, with settlement expected to occur by June 30. The estimated book value of the assets is $NZ430 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.

And the market - she seems to like it...........mmmm, for how long