Toll to raise $100m through asset sales

Transport and logistics group Toll Holdings has announced that its marine logistics business will focus on the offshore LNG sector, after completing the sale of several operations in northern Australia and Asia.

The company expects to reap more than $100 million from the asset sales, but emphasised that it would retain its Francis Bay terminal in Darwin and its marine logistics work for LNG operations in Queensland and northern WA.

The retained assets also include its Broome supply base, jointly owned by MMA Offshore (formerly Mermaid Marine).

Toll is selling the bulk of its marine freight operations in Queensland and the Northern Territory to marine logistics provider Sea Swift for $45 million and a minority 20 per cent stake in the new business.

In a statement, Toll said the agreement includes the sale of two Darwin-based vessels which currently service remote communities such as Gove and Groote Eylandt in the Northern Territory, and two Cairns-based vessels servicing Weipa and the Torres Strait Islands.

Toll managing director Brian Kruger said the sale was a good result considering difficult market conditions the company’s marine logistics business faced in Queensland and the Northern Territory in recent years.

Toll is also selling its Global Express Asia parcel business in Singapore.

The company is offloading its 50 per cent stake in its TdAS airport services business, the remaining 37 vessels from its Asia marine logistics business, and its stake in Indian truckload carrier BIC.

Toll will also review options for its offshore petroleum services oil and gas supply business in Singapore.

Mr Kruger said the sales would release significant capital and allow Toll to exit loss-making business and sell others that were not part of its future strategy.

He said Toll's first half result would be impacted by significant items, particularly the exit of the Toll marine logistics business in Asia.

Toll's shares were 0.2 per cent lower at $5.42 per share at 11:20am.