SYDNEY (XFN-ASIA) - Transport logistics company Toll Holdings Ltd said it will split into two separate companies as part of a restructuring plan as it seeks expansion in Asia and elsewhere in the world.
Toll said it plans to spin off its infrastructure assets into a new company as it looks to raise funds to expand internationally.
Toll said it had also applied for a waiver from Australia's competition regulator of a requirement for it to sell a 50 pct stake in its Pacific National rail freight business because of its 6 bln aud plus takeover of stevedoring company Patrick Corp Ltd earlier this year.
In May, Toll also took over Singapore logistics group Sembcorp Logistics Ltd.
The restructuring will create two Australian Stock Exchange-listed companies -- Toll Holdings and Infrastructure Co.
Toll said the plan is aimed at maximizing shareholder value and positioning both companies for enhanced future growth in a global market.
Toll chief executive Paul Little said, in a statement, that the restructuring will allocate the assets and resources of the company to the maximum advantage of shareholders, employees and customers.
'The restructure should be seen as the next generation of growth for both companies by allowing each business to expand faster into global markets, through strategic acquisitions and rapid organic growth,' Little said.
He said it will also offer investors a clear choice of investment, designed to maximize growth potential with an overall lower cost of capital and improved flexibility.
(1 usd = 1.28 aud)
bruce.hextall@xfn.com
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© 2006 AFX News
