TFM TO BUY MEXICAN GOVERNMENT’s SHARE OF GRUPO TFM

TFM TO BUY MEXICAN GOVERNMENTÆS SHARE OF GRUPO TFM Transportacion Maritima Mexicana S.A. de C.V. said it will acquire the Mexican government's 24.6-percent share of Transportacion Ferroviaria Mexicana S.A. de C.V. for about $168 million.
   The transaction, to be completed in the third quarter, excludes about $81 million, which constitutes the proceeds from TFM's sale of the Hercules-Mariscala Line, a redundant 18-mile rail line that has been sold to the government. TFM will cover the $168 million purchase price through case and debt financing.
   With the sale of the government's remaining share, Grupo-TFM will be fully privatized. Kansas City Southern Industries, the parent company of Kansas City Southern Railway Co., owns the remaining share of the Mexican railroad.
   TFM also has an ownership interest in Transportation Ferroviaia Mexicana.