Toll to acquire Perkins Shipping

Publicly-listed Toll Group will use "existing facilities" to fund the acquisition of Perkins' parent, Perkin Group Holdings Pty, the company said in a statement yesterday.

Lloyd's List DCN first reported in February that Toll was looking to buy Perkins.

Conditions for the deal include clearance from Australia's competition regulator.

"The increasing importance of south-east Asian to northern Australia reinforces the future prospects for organic growth of Perkins' international shipping services linking Australia and Asia," Toll Group managing director Paul Little said.

"The Toll Group's internationally integrated service offering is already benefiting our Asian and Australian customers.

"With its potential for future regional growth we are confident our customers will find Perkins' Shipping a valuable addition to the Toll Group."

Toll Group expects Perkins to be earnings per share accretive in its first year of operating under Toll, Mr Little said.

"Toll's strong balance sheet and the group's exceptional existing businesses continue to provide the funding capacity and platform to acquire quality assets such as Perkins Shipping despite current difficult economic times," he said.

Toll Holdings shares were steady at $6.65 in trading on the Australian Securities Exchange late this morning.