Lang wheels out its rail road

["JoeC" <jcostello@ozemail.com.au>]

Lang wheels out its rail road

By CATHRYN JIMENEZ and agencies
07feb01

LANG Corporation yesterday declared its hand as an interested party in the
National Rail Corporation and Howard Smith's Towage business as it moves to
expand into the rail sector.

Fresh from announcing a $398 million capital raising, Lang Corp managing
director Chris Corrigan also indicated the group may bid for the NSW
state-owned railroad Freight Corporation.

National Rail - part owned by the federal, NSW and Victorian governments -
is to be sold parallel with Freight Corp later this year with a price tag of
$500 million.

"We will have a very good look at National Rail," Mr Corrigan said at the
company's annual shareholder meeting in Sydney.

Freight Corp is estimated to be worth $1 billion, while Howard Smith's
Australian towage business is estimated to be worth $450 million.

Other companies interested in National Rail include transport group Toll
Holdings and Wesfarmers.

Mr Corrigan said while Lang had not run its slide rule over the Howard Smith
business, it would not be interested in taking on its UK towage operations,
only the Australian business.

Howard Smith managing director Ian Tsicalas said the towage business was a
core asset and added "he was surprised" by Mr Corrigan's comments.

"It's the first time Chris has said that, so all I can do is digest that."

Lang is in the process of setting up a war chest worth $400 million to spend
on acquisitions in Australia.

The group is well on its way, yesterday completing a $194 million capital
raising, just 24 hours after unveiling those plans.

The placement of 16 million shares was well oversubscribed at a final price
of $12.10 cents above the underwritten price.

The company intends to allot the shares on or before February 16.

Lang hasn't set a timetable for the acquisitions, though "in the course of
this year we see a number of things coming to fruition", Corrigan said.

Lang is "interested in more activities in trains and obviously there are
various opportunities coming up", said Ross Wilkinson, who holds the stock
in the $500 million he helps manage at County Investment Management.

Lang's "interest is more in the distribution of imported goods in
containers" from ports to its customers, said Mr Wilkinson, who wasn't
planning to change County's holding in the company.

Last month, the group completed the $47 million acquisition of Mayne
Nickless' port handling facility.

Lang Corp's stock price closed 28 cents lower at at $12.38.