Get Adobe Flash player

We bring you updated Trucking News , FREE Classifieds and the opportunity to share your Images and Videos in our Photo Gallery.

Try our NEW Free Classifieds! Click Here

Centurion to snap up Regal General Freight from K&S

User Rating: / 0
PoorBest 

K&S Corporation to retain Regal Group's heavy haulage division

Centurion to snap up Regal General Freight from K&S
A Regal/K&S combination. Image: Riki Graham

 

Nearly a decade after buying Regal Transport Group, K&S Corporation is offloading the general freight division, with Centurion Transport announced as the purchaser.

An unconditional agreement has been executed for the sale of the Western Australia-based business and "certain assets".

K&S will still retain the Regal’s heavy haulage arm.

"After considering various options in relation to Regal General Freight, the Board of K&S Corporation elected to undertake this transaction to realise improved shareholder returns and provide ongoing certainty to the Regal General Freight employees and customers," the company says in an announcement to shareholders.

"The Transaction will allow K&S Corporation to focus on its core competencies, including its Regal Heavy Haulage business, which will continue to be operated and invested in by K&S Corporation.

"K&S Corporation will redeploy (or sell) assets that are not currently generating an adequate rate of return in the Regal General Freight business and the Transaction will also release working capital of approximately $7 million.

"Under the Transaction, Regal will transfer to Centurion its rights and entitlements under customer contracts and Centurion will make offers of employment to the majority of the employees of KSF working in the Regal General Freight business."

K&S says it has agreed to:

  • a nominal purchase price for the assets of the Regal General Freight business (largely customer contracts and intangible assets) to be acquired under the agreement;
  • provide access to Centurion, at commercial rates, to a number of its fleet to support the customer contracts for a transitional period.

The parties are targeting August 30 for finalise the transaction.

K&S says its FY2019 financial statements, yet to be publicly released, are expected to include an after-tax charge of $5.1 million in relation to accounting adjustments, including impairment charges, as a result of the transaction.

Source of this article and other great articles

Facebook and Twitter

TruckstopAustralia.com on Facebook
TSAU on Facebook

TruckstopAustralia.com Twitterfeed
TSAU on Twitter

Breaking Sports News

Latest News|FOX SPORTS
Latest sports news from Latest News|FOX SPORTS
Banner
Advertise with us! Click Here

Who's Online

We have 101 guests online

Advertisement