USA: Container leasing company CAI International has reached an agreement to sell its remaining railway wagons to Global Atlantic Financial Group’s rail, road and aviation asset leasing business Infinity Transportation for $228·7m.
‘Exiting the rail business allows us to execute our strategy of maximising shareholder returns by focusing all of our resources on our core container leasing business’, explained Interim President & CEO Timothy Page on November 30, adding that the container business was experiencing ‘unprecedented levels of demand’.
Subject to regulatory review the transaction is expected to be completed by December 31. The sale will generate approximately $33m in net cash proceeds after repayment of rail-related debt and transaction costs. CAI expects to incur an after-tax loss of $17m in discontinued operations in conjunction with the sale; of this 75% represents a non-cash write down of the carrying cost of the fleet and the remaining 25% covers selling and employee- related costs.
