ABX Logistics to restructure
The Belgian state-controlled group ABX Logistics said that it will restructure its organization and subsidiaries under a new holding company, as the group continues to plan a return to break-even.
At a meeting on Sept. 26, the board of directors of the parent company of ABX Logistics approved a complete reform of its legal structures. Under the plan, between Oct. 1 of this year and early January 2004, “all profitable or nearly profitable” ABX Logistics activities will be transferred to a new holding company set up under Belgian law under the name of “ABX Logistics Worldwide s.a./n.v.” The holding’s chief executive officer will be Laurent Levaux.
“By simplifying and clarifying these structures, group management is aiming to increase the management efficiency of its different entities,” ABX Logistics said in a statement.
However, the group’s activities in France, currently the subject of “drastic action being taken to restructure and scale down the scope of activities,” will not be transferred to the holding.
ABX Logistics expects to make a consolidated net loss of about 70 million euros ($80 million) for the 2003 financial year, as compared with 254 million euros in 2002. It plans to break even towards the middle of 2004.
The Belgian railway company SNCB, which owns ABX Logistics, is awaiting the European Commission’s agreement of a proposal to convert of 91.6 million euros ($105 million) of debt into capital.
In July, the European Commission decided to examine financial aid granted to ABX Logistics by SNCB, to establish whether it constituted subsidies.