Asciano (AIO) announces that in response to a sale process triggered by the Port of Tauranga, Patrick Auto, Bulk & General Ports Pty Limited has elected to acquire from the Port of Tauranga the additional 50% interest in New Zealand ports and stevedoring operator C3 Limited for a total consideration of A$55.3m (NZ$70m). This will make C3 a wholly owned Asciano business, with the transaction expected to be completed by the end of CY2012. C3 Limited is the leading provider of ports and stevedoring services in New Zealand operating in 14 ports across the country as well as providing forestry services in three ports in Australia.
Asciano CEO and Managing Director Mr John Mullen said “We are very pleased to be in a position to acquire the outstanding 50% interest in what is a strategic asset for our Bulk & Automotive Port Services division. This acquisition delivers us a leading position in the New Zealand port services market and the opportunity to drive cross fertilisation benefits, leveraging the skills and experience of both C3 and our Australian businesses. “The Bulk & Automotive Port Services division has undergone a significant restructure of its activities over the last two years to focus on higher margin value added activities. The benefits of this program are evidenced in the 45% EBIT growth reported by the division in FY12. This acquisition will provide new opportunities to expand the division’s activities and drive further growth.”