KiwiRail is amalgamating KiwiRail Holdings Limited with its subsidiary company KiwiRail Limited, with KiwiRail Limited ceasing to exist as a separate entity.
The move has no practical effect on the daily operations of KiwiRail or on its employees, but the simplification will improve governance and remove administrative burden and the complexity of having two separate companies, KiwiRail Board Chair Suzanne Tindal says.
KiwiRail Holdings Ltd was created in 2012 and is an SOE. KiwiRail Ltd was created in 2008 when bought by the Crown from previous owners Toll, and is a wholly owned subsidiary of KiwiRail Holdings Ltd. The moves mean KiwiRail Holdings Ltd will assume all the rights and obligations previously held by KiwiRail Ltd.
“Over the last 14 years the demarcation of the roles for KiwiRail Holdings Ltd and KiwiRail Ltd has lost relevance and is no longer required for effective and efficient operation of the KiwiRail Group,” Ms Tindal says.
The amalgamation is expected to take effect on 30 June.