Media Release
31 January 2002
Toll & Lang Win Rail Bid
Toll Holdings, Australia's leading provider of integrated
logistics and transportation services, today advised
that its joint venture with Lang Corporation had
been successful in its bid for the privatisation
of the FreightCorp / National Rail businesses.
The acquisition values the rail assets at a current
enterprise value of $1.05 billion and presents an
outstanding opportunity to reform rail freight operations
across the country. In addition, the consortium
has committed to capital expenditure of $118 million
in relation to the FreightCorp grain operations.
Both debt and equity funding have been fully committed
for the acquisition, with the ultimate funding mix
to be determined over the next few weeks.
Toll Managing Director, Mr Paul Little said, "Rail
already represents a major element of Toll's operations,
and has formed an integral part of our strategic
direction, 20% of our long distance linehaul effort
is rail based today".
The privatisation of these rail businesses, and the
resultant efficiency of rail, will significantly
enhance Toll's integrated logistics offering.
Toll will equity account for its interest in the rail
companies and it is expected that the acquisition
will be earnings per share positive from the first
full year of operation.
The consortium was advised by Carnegie Wylie and
Company.
Copies of a joint press release by the Toll/Lang consortium,
together with announcement by the Government Vendors,
are attached.
Ends.
For further information please contact:
| Paul Little |
Neil Chatfield |
| Managing Director |
Chief Financial Officer |
| Toll Holdings |
Toll Holdings |
| 0418 335 053 |
0419 566 847 |
| 
Home
