Progressive Railroading


Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

All fields are required.

Rail News Home Rail Industry Trends


Rail News: Rail Industry Trends

Grupo TMM shareholders sanction sale of TFM stake to KCS

Yesterday, Grupo TMM S.A. announced its shareholders unanimously approved the sale of TMM's 51 percent voting interest in TFM S.A. de C.V. to Kansas City Southern.

Under an amended TFM sale agreement reached last month with KCS, TMM will receive $200 million in cash, 18 million shares of KCS common stock, a $47 million, two-year promissory note, and up to $110 million through a combination of cash and KCS common stock after TMM resolves a VAT claim with the Mexican government.

As part of the agreement, KCS also will enter into a three-year, $9 million contract with a consulting firm controlled by TMM Chairman and Chief Executive Officer José Serrano, and KCS and TMM will dismiss all litigation between the two companies after the transaction is completed.

The agreement still is subject to KCS shareholder approval — which KCS officials expect to receive by March — and U.S. antitrust laws. Mexico's Foreign Investment and Federal Competition commissions already have approved the deal.

Contact Progressive Railroading editorial staff.

More News from 1/14/2005