Toll eyes $1.5bn return from forced divestments

<p>Toll Holdings’s divestments, being made due to competition concerns, could net it up to $1.5bn, the company told investors yesterday (Tuesday, July 4).</p> <p>In a market update presentation, Toll chief executive Paul Little said the sale of its 50% of rail concern Pacific National was likely by December and that there was &#8220significant buyer interest&#8221. </p> <p>A &#8220starters kit&#8221 had been assembled for prospective buyers and interested parties identified.</p> <p>An expected sale date for its Bass Strait shipping and Tasmanian forwarding interests was also expected in December. </p> <p>A complete review of Virgin Blue, of which it holds a 62% interest, would be completed by the end of the year.</p> <p>More generally, noting consolidation amongst international rivals, Toll said narrow-focus transport and logistics enterprises were under pressure</p> <p>Toll said there would be $62m in pre-tax synergies from the Patrick Corp takeover and reaffirmed Toll’s $492m net profit target. Gearing by this time next year was expected to fall 8% to 32%.</p> <p>With overall targets confirmed, Toll’s EBITDA should come in at $1,26bn on revenues of $8,397bn, the company said.</p> <br />