MAJOR Australian logistics and transport provider Toll Group expects to raise A$100 million (US$85.2 million) from an asset sale of diversfied non-core, loss makers.
It will sell TOPS (Toll Offshore Petroleum Services), an oil and gas supply base in Singapore, where Toll acts as a landlord as well as supply base operator. Toll seeks to drop its landlord role, but remain supply base operator.
The company is selling Toll Marine Logistics Northern Australian marine freight business and has entered into an agreement with Cairns-based marine logistics provider Sea Swift to take on assets of its Far North Queens land and Northern Territory marine freight operations for A$45 million and a minority 20 per cent stake in the new business.
Toll also wants to sell Toll Marine Logistics Asia Following the sale of 34 vessels to date, Toll will now exit its Asia marine logistics operations by selling its remaining 37 vessels to be sold in six months.
The company wishes to sell Toll Global Express Asia, an express parcel business based in Singapore, which lacks the scale needed to create critical mass to produce competitive advantage, said the Toll statement.
Toll data Airport Services (Tads) is also up for sale. Toll has agreed to sell its 50 per cent stake in TdAS to its joint venture partner, dnata - one of the world's largest air service providers, subject to approval from Australia's Foreign Investment Review Board.
Finally, there is the sale of BIC India, a less than truckload carrier, dealing with the automotive sector. Toll acquired a 40 per cent interest in the business in 2009, but found it hard to make progress and has sold its interest to the majority shareholder.
"These decisions reflect our drive to improve sustainable shareholder returns through our focus on return on capital employed," said Toll managing director Brian Kruger.
"These transactions will have multiple benefits for Toll, including releasing significant capital now tied up in real estate, exiting loss making businesses, and selling businesses that are non-core to Toll to more natural longterm owners."
Toll Group is the Asia Pacific region's leading provider of transport and logistics. Toll employs 40,000 people across some 1,200 locations in more than 50 countries. Toll's specialist logistics capabilities incorporate a range of sectors including defence and government, industrial, manufacturing, mining and resources, retail and automotive.
WORLD SHIPPING
26 November 2014 - 23:25
Toll sells non-core, loss-making businesses, expects to make US$85.2 million
MAJOR Australian logistics and transport provider Toll Group expects to raise A$100 million (US$85.2 million) from an asset sale of diversfied non-core, loss makers.
WORLD SHIPPING
26 November 2014 - 23:25
Toll sells non-core, loss-making businesses, expects to make US$85.2 million
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