Effective Dec. 1, Genesee & Wyoming Inc. (GWI) (NYSE: GWR) has completed its acquisition of the assets of FreightLink Pty Ltd (receivers and managers appointed) (FL), Asia Pacific Transport Pty Ltd (receivers and managers appointed) (APT) and the other APT joint venture sellers (together with FL and APT, "FreightLink") for A$332 million (US$319 million at current exchange rates), plus the assumption of debt with a carrying value of A$1.8 million (US$1.7 million at current exchange rates). GWI had announced an acquisition agreement back in June.
The company said it will incur transaction-related expenses of approximately A$24 million (US$23 million at current exchange rates) in the fourth quarter of 2010, principally related to the payment of stamp duty (an Australian asset transfer tax).
FreightLink owns and operates the 1,400-mile Tarcoola to Darwin railroad, located on land leased from the AustralAsia Railway Corporation under a long-term concession agreement. FreightLink began operations in 2004, after the building of the Alice Springs to Darwin portion of the rail line.
“The completion of the FreightLink acquisition heralds a new era for rail in South Australia and the Northern Territory," said Bert Easthope, managing director of Genesee & Wyoming Australia (GWA). "GWA looks forward to delivering quality service to customers in the Adelaide to Darwin corridor. The railroad is a strategic asset in the development of the mining industry in the Northern Territory and South Australia. We welcome the opportunity to support and invest in the future growth of our customers.”