Nov. 5 (BusinessDesk) - Asciano, Australia’s largest national rail freight and ports operator, has exercised its right to acquire the 50 percent of the C3 marshalling and stevedoring business in New Zealand for $70 million from Port of Tauranga.
C3, formally known as Toll Owens Limited, operates at 13 ports throughout New Zealand. Port of Tauranga had offered to buyout Asciano at the same price and Asciano exercised its right under a so-called shootout clause of the joint venture.
“Our original desire to own 100 percent of C3 was prompted by the company’s deteriorating financial performance and our inability as a 50 percent shareholder to make the changes necessary to reverse this trend,” chief executive Mark Cairns said in a statement.
“The loss of C3 will have little impact on our future plans and we are pursuing opportunities that will enable us to continue our growth strategy,” he said.
Port of Tauranga shares last traded at $12.90 and have gained about 30 percent this year.