Toll Group (TOL) has completed the sale of its Australian finished vehicle distribution service to automotive storage, processing and rectification specialist PrixCar, the 50-50 joint venture between Toll and K-Line Auto-Logistics Pty Ltd. As part of the transaction, Toll received $88.4 million cash. The sale generated a pre-tax gain of $44 million (approximately $35 million after tax) which will be recognised in the 2013 financial year. Toll retains its 50 per cent interest in PrixCar, and will continue to account for its 50 per cent share of PrixCar’s earnings as associate earnings.
Toll retains its parts logistics service in Australia and Asia, as well as its finished vehicle distribution service in Asia. Toll has also completed the sale of the Australian interstate linehaul and warehousing operations of its Toll Refrigerated business to Rand Refrigerated Logistics for $6.8 million, as announced earlier this month. Toll Refrigerated’s interstate linehaul and consolidated warehousing operations have revenues of around $75 million and made an operating loss in the financial year to 30 June 2012.