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Toll to offload Japanese subsidiary KSU Logistics

Toll will sell KSU Logistics for $19.5 million in a deal to be finalised on May 1

Toll is moving to streamline its Japanese operations with the announcement it will offload KSU Logistics in May for $19.5 million.

KSU Logistics, which is a part of Toll Express Japan and is involved in domestic pick-up and delivery, air and rail logistics, will be sold to logistics and construction company Konoike Corporation.

The deal does not include KSU’s core express freight arm, which will remain under the Toll banner.

Toll Managing Director Brian Kruger says the sale is consistent with Toll’s strategy of streamlining Toll Express Japan and improving its express freight operations.

“Last year, following a review of Toll Express Japan, we announced that a full sale of the business was unlikely in the near term, but that other options to improve the structure and performance of the business would continue to be explored,” Kruger says.

“Since that time, Toll Express Japan has made good progress in improving its operational performance, and we look forward to seeing this continue.”

Kruger says the deal, which is expected to be completed on May 1, will free up cash and allow management to focus on improving the core express part of the business.

Toll expects to make a one-off gain of about $4 million from the sale of KSU Logistics.

Around 600 Toll employees are expected to transfer to Konoike Corporation.

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