Stricken Tranz Rail Holdings, being courted by Australia's Toll Holdings and the Government, today agreed to suspend asset sales until the suitors' respective offers had been resolved.
Chairman Wayne Walden said it was important to have the final bids on the table for the trucking company Tranz Link so they could
make an evaluation and ensure maximum flexibility for shareholders.
Tranz Rail has signed a $226 million heads of agreement bailout with the Government whereby the Government gets a 35 per cent stake at 67 cents per share for $76 million. The deal involves the Government buying the track network for $1 and spending $100 million upgrading the tracks over five years. The Government would also agree to buy another $50 million of assets.
Meanwhile, Toll, a 10 per cent shareholder, is bidding 95 cents a share but has told Tranz Rail it does not want more assets sold.
- NZPA
