CN sells Tranz Rail stake

Canadian National has sold all of its 23.7 per cent stake in Tranz Rail Holdings Ltd., the New Zealand commercial rail freight and inter-island ferry operator, for CDN $70 million.

CN’s investment in Tranz Rail was acquired through its acquisition of Wisconsin Central Transportation Corporation in October 2001.

The sale of the Tranz Rail shares will not affect CN’s income statement because the shares were classified as “available for sale” as part of the purchase accounting treatment of the WC acquisition.