News
26.11.14

Sale of Toll Marine Logistics

26/11/2014

Sale of Toll Marine Logistics Northern Australia and North Queensland assets to Sea Swift.

"As announced to the Australian Securities Exchange (ASX) this morning, Toll has entered into an agreement with Cairns-based marine logistics provider Sea Swift, for the sale of assets related to its Far North Queensland and Northern Territory general freight operations for A$45 million and a minority 20 per cent stake in the business.

The agreement includes the sale of the Toll Warrender, Toll Fourcroy, Toll Biquele Bay and Coral Bay vessels. Toll will retain a minority share in the newly combined business with Sea Swift increasing their capacity to manage the increase in freight demands.

The asset sale of the general freight operations will allow Toll Marine to focus on the growth sectors in-line with the recent contract award in Western Australia and ongoing operations in Gladstone.

The sale is conditional and also subject to Australian Competition and Consumer Commission (ACCC) approval, with a ruling on this expected by March 2015. Pending ACCC approval it is expected the asset sale will be concluded by April 2015. Until this time the business will continue to operate and service the same clients and ports.

The agreement does not include the Francis Bay terminal in Darwin, or the Gladstone LNG project vessels (Toll Dragonfly, Toll Kestrel and Toll Osprey) nor the newly awarded Western Australia operations (Toll Sandfly, Toll Firefly and new-build vessels), nor does it include the support staff required to operate these ongoing operations. Toll Marine Logistics will continue to operate in these growth areas in close collaboration with other Toll business units.

As a result of the asset sale there will regretfully be redundancies across most areas of our business, taking effect when the sale takes place around April 2015, Toll will be paying full redundancy entitlements to those affected by this sale.

Toll will be providing assistance to all employees who are affected by this sale and more information will be provided to you over the coming months by your direct manager and HR manager."

 

Toll's announcement today [25/11/2014], also included the monetise of its Singapore Toll Offshore Petroleum Services; exit of Toll Marine Logistics Asia; Sale of Toll Global Express Asia; sale of its 50% interest in the Toll dnata Airport Services joint venture; and sale of its 40% interest in BIC in India. Mr Brian Kruger Managing Director of Toll said "these decisions reflect our drive to improve sustainable shareholder returns through our focus on return on capital".

 

The AMOU is currently trying to secure and Agreement with Sea Swift, however in view of the sale we are also seeking legal advice as to whether the Toll Agreement applies to the newly combined business; albeit that Toll is a minority shareholder.

 

 

Jan Thompson

Industrial Officer

Australian Maritime Officers Union

194 Drummond Street Carlton 3054

Ph: 03 9663 6702, Mob: 0417 050 816

jan@amou.com.au