Railroad owner Genesee & Wyoming to be taken private in $8.4B deal

Adelaide, Australia - February 3, 2015: A mix of new and old GWA (Genesee & Wyoming Australia) motive power (locomotives) combine to lift a train of empty grain hoppers out of the Belair crossing loop in the Adelaide Hills en route from port to a

U.S. freight railroads operator Genesee & Wyoming on Monday agreed to be acquired by Toronto-based Brookfield Asset Management and Singaporean sovereign wealth fund GIC in a deal valued at about $8.4 billion, including debt.

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The announcement comes a day after Reuters reported news of the development, citing sources.

The Transaction will result in G&W becoming a privately held company.

TickerSecurityLastChange%Chg
GWRGENESEE & WYOMING109.65-0.36-0.33%

G&W owns a portfolio of 120 short line railroads, predominantly in North America, with operations in Europe and Australia.

"We believe this transaction is an excellent outcome for all G&W stakeholders,” said Jack Hellmann, G&W Chairman and Chief Executive Officer. “For our current stockholders, the sale price realizes significant value and represents a 39.5 percent premium to our March 8 share price. And for long-term investors who have owned our shares for the past two decades, the sale price represents a return of more than 5,400 percent.”

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Pursuant to the agreement, each issued and outstanding share of G&W will be converted into the right to receive $112 per share in cash.