Australia's Toll in takeover bid for HK's BALtrans

AUSTRALIAN transport giant Toll Holdings has launched its shareholder-backed takeover of Hong Kong's BALtrans, one of the largest Asian forwarding and logistics companies.

BALtrans Holdings Ltd generates an annual consolidated revenue of more than GBP452 million (US$897.3 billion), according to a Toll press statement. And its founding shareholders, said Toll, have committed to tender their shares to represent 44 per cent of BALtrans equity.

Toll CEO Paul Little said: "The inclusion of BALtrans with the Toll Group based on historicals would result in annual revenues outside Australia and New Zealand in excess of GBP79 million, which is over 20 per cent of our revenues, excluding Virgin Blue."

"The companies will be able to leverage each other's capabilities and customers to further accelerate growth both regionally and globally within the freight forwarding market," Mr Little added.

Toll will fund the acquisition by existing debt facilities and expects it to be making money for Toll in its first full financial year.

"The bid represents a premium of 41 per cent over the pre-announcement trading price, reflecting Toll's desire to take control of such a quality business network," Mr Little said.