Logistec Corporation Acquires Sydney Coal Railway Inc.
(Marketwire Via Acquire Media NewsEdge) MONTREAL, QUEBEC, November 3 / MARKET WIRE/ --
Logistec Corporation (TSX: LGT.A) (TSX: LGT.B), a diversified cargo handler in eastern Canadian and U.S. ports, today announced that it has acquired, directly and indirectly, from Quebec Railway Corporation Inc. ("QRC") all of the issued and outstanding shares and inter-company debt of Sydney Coal Railway Inc. ("SCR") for a consideration partly paid in cash at closing with the balance being payable upon distributions of proceeds of the intended disposition of QRC's other assets but no later than twelve months following the closing of the SCR purchase.
Logistec Corporation owns a participation in QRC representing 16.2% of all issued and outstanding shares, on a fully diluted basis. It is expected that the disposition of QRC's remaining assets will be completed before the end of the 2nd quarter of 2009. The aggregate net cash disbursement by Logistec as a result of the SCR transaction and the receipt of its pro rata portion of the proceeds from the disposition of QRC's remaining assets is expected to be approximately $11 million, after off-sets, mostly incurred in fiscal year 2008.
SCR operates a 22.5 kilometres short-line railway and provides service for the transportation, storage, warehousing and delivery of coal shipments from the international coaling piers on Sydney Harbour in Sydney, Nova Scotia to the Lingan Generating Station, a coal-fired electrical generating station near New Waterford, Cape Breton, Nova Scotia. The latter is owned and operated by Nova Scotia Power Incorporated ("NSPI"), a subsidiary of Emera Inc., under a ten year service agreement with Logistec Stevedoring Inc., a wholly-owned subsidiary of Logistec Corporation. SCR also maintains an interchange connection with the North American railway network at Sydney where it connects to the Cape Breton and Central Nova Scotia Railway.
Logistec Corporation is based in Montreal (QC) and provides specialized services to the marine community and industrial companies in the areas of container, break-bulk and bulk cargo handling at 20 ports in Eastern Canada, the Great Lakes and the U.S. East Coast; agency services to foreign shipowners and operators serving the Canadian market; marine transportation services geared primarily to the Arctic coastal trade; and PCB management, site remediation, trenchless structural rehabilitation of watermains, and risk assessment. Logistec Corporation has been profitable each year since 1969 and has more than doubled its revenue since 1995 through internal growth and strategic acquisitions. The Company has paid regular dividends since becoming public and payments have grown steadily over the years.
A public company since 1969, Logistec Corporation's shares are listed on the Toronto Stock Exchange under the ticker symbols LGT.A and LGT.B. More information can be obtained at the Company's website at www.logistec.com.
Jean-Claude Dugas, CA
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