Toll rationalises business portfolio

Logistics giant Toll Group has announced a number of key changes to its portfolio that it says will drive higher returns for shareholders

Toll Group has announced it is undertaking a rationalisation of its business portfolio, and will be selling off a number of its interest to improve shareholder returns.

The changes encompass the exit of Toll Marine Logistics Asia and the disposal of its remaining assets; the sale of Toll Global Express Asia; the sale of the group's 50 per cent interest in the Toll dnata Airport Services joint venture; the sale of its 40 per cent interest in BIC in India; the conditional sale Toll Marine Logistics operations in Far North Queensland and the Northern Territory; and a range of measures to monetise the Toll Offshore Petroleum Services (TOPS) base in Singapore.

In excess of $A100 million will be realised through the measures, says Toll.

According to Toll Group's Managing Director, Brian Kruger (pictured), the changes will enhance the company's operational efficiency and ultimately deliver greater returns to its shareholders.

"These decisions reflect our drive to improve sustainable shareholder returns through our focus on return on capital employed," he said.

"These transactions will have multiple benefits for Toll, including releasing significant capital presently tied up in real estate, exiting loss-making businesses, and selling businesses that are non-core to Toll to more natural long-term owners.

"While the final timing of the various transactions announced today will vary between the first half and second half of this financial year, we expect that they will all complete during this financial year, resulting in an overall positive contribution to reported earnings. However, the first half reported result will include a negative impact of nonrecurring significant items relating to actions completed in the period, particularly the decision to exit from Toll Marine Logistics Asia."

Toll rationalises business portfolio

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