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TFM RAILROAD BUYS 24.6% STAKE FROM MEXICAN GOVERNMENT

TFM RAILROAD BUYS 24.6% STAKE FROM MEXICAN GOVERNMENT

   The Mexican railroad Grupo Transportacion Ferroviaria Mexicana has acquired a 24.6 percent equity stake that the Mexican government owned in the railroad.

   Kansas City Southern and Grupo TMM, which already owned a controlling shareholding in TFM, did not disclose how much TFM paid for the extra shareholding.

   Javier Segovia, president of TMM, said that the company has completed this transaction without requiring additional debt or equity financing at the holding company level.

      “The acquisition of the additional ownership of TFM confirms our confidence in the future of this railroad,” said Michael R. Haverty, chairman, president and chief executive officer of Kansas City Southern.

   TFM operates Mexico’s northeast rail lines and carries over 40 percent of the country’s rail cargo.