Montréal,
Québec, November 3,
2008 – Logistec Corporation [TSX: LGT. A and LGT.B], a
diversified cargo handler in eastern Canadian and U.S. ports, today announced
that it has acquired, directly and indirectly, from Québec 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.
About Logistec
Logistec
Corporation is based in Montréal (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. -
30 - For further information: Jean-Claude Dugas, CA
Vice-President, Finance
Logistec Corporation
jdugas@logistec.com
(514) 985-2345 |
