By Phil Boeyen, ShareChat Business News Editor
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Monday 10th December 2001 |
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Connex joined in the negotiations for the Tranz Scenic services after it bought a half-share in August of the Australian joint venture partnership. The other half of the JV belongs to Australian businessmen Donald Gibson and Gary McDonald.
However Connex withdrew from the Tranz Scenic negotiations early in November after the events of September 11 raised concerns about the price being paid in light of revenue projections which could be affected by the global fall in tourism.
"Connex believed that tourist-based businesses in Australia and New Zealand would struggle as a result of the 11 September 2001 events and the economic consequences that will follow," the company says.
Donald Gibson and Gary McDonald have since gone ahead with the deal, forming a new 50:50 JV with Tranz Rail to operate the service and putting $5 million each into the venture with additional funding from ASB Bank. The total sale price for Tranz Scenic is $33 million.
The JV will manage and operate the five Tranz Scenic routes it has purchased and will own all of Tranz Rail's long distance, passenger rolling stock. Tranz Rail will have board representation but is not planning an active management role.
Since Connex pulled out of the deal it says it is keen to keen to clear up any confusion that it has a stake in the purchase of Tranz Scenic.
"Neither The Victorian Railway Company Pty Ltd (West Coast Railway) nor Connex is directly or indirectly involved in the acquisition or ongoing operation of the Tranz Scenic business," the company says. West Coast Railway is the trading name of The Victorian Railway Company.
However Connex adds that it remains interested in the New Zealand market.
"Connex is still keen to pursue business opportunities in New Zealand, in particular in urban transportation in major cities in New Zealand."
Connex is a subsidiary of Vivendi Environnement, which also owns they Onyx rubbish collection and recycling brand that operates in New Zealand.
Vivendi Environnement is majority owned by the giant French media and communications conglomerate, Vivendi Universal.
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