SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 13, 2001
KANSAS CITY SOUTHERN INDUSTRIES, INC.
-------------------------------------
(Exact name of company as specified in its charter)
DELAWARE 1-4717 44-0663509
--------------------- ------------- -------------------
(State or other jurisdiction (Commission file (IRS Employer
of incorporation) number) Identification Number)
114 West 11th Street, Kansas City, Missouri 64105
-------------------------------------------------
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code:
(816) 983 - 1303
Not Applicable
(Former name or former address if changed since last report)
Item 5. Other Events
On June 13, 2001, Transportacion Maritima Mexicana, S.A. de C.V. ("TMM") and
Kansas City Southern Industries, Inc. ("KCSI" or "Company") announced that
Transportacion Ferroviaria Mexicana, S.A. de C.V. ("TFM") will acquire the
Mexican government's 24.6% ownership of Grupo TFM. The acquisition of the
Mexican government's ownership is planned to occur during the third quarter
of 2001.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit No. Document
(99) Additional Exhibits
99.1 Press Release issued by TMM, TFM
and KCSI dated June 13, 2001
entitled, "TFM To Purchase
Mexican Government's Share of
Grupo TFM", is attached hereto
as Exhibit 99.1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly caused this Report to be signed on its behalf by the undersigned
hereunto duly authorized.
Kansas City Southern Industries, Inc.
Date: June 18, 2001 By: /s/ Louis G. Van Horn
----------------------------
Louis G. Van Horn
Vice President and Comptroller
(Principal Accounting Officer)
EXHIBIT 99.1
TMM COMPANY CONTACT: AT THE FINANCIAL RELATIONS BOARD:
Brad Skinner, Senior Vice President, Tad Gage (generalist investors)
Investor Relations (312) 640-6745 (tgage@frb.bsmg.com)
011-525-629-8725 Kristine Walczak (analysts)
(brad.skinner@tmm.com.mx) (312) 640-6723 (kwalczak@frb.bsmg.com)
Tim Grace (media)
(312) 274-2240 (tgrace@frb.bsmg.com)
TFM COMPANY CONTACT:
Mario Gonzalez, Chief Financial Officer
011-525-447-5811
(magonzalez@gtfm.com)
KSU COMPANY CONTACT:
William H. Galligan, AVP-Corporate Affairs
816-983-1551
(william.h.galligan@kcsr.com)
TFM TO PURCHASE MEXICAN GOVERNMENT'S SHARE OF
GRUPO TFM
(Mexico City, June 13, 2001) - Transportacion Maritima Mexicana, S.A. de C.V.
(NYSE: TMM and TMM/A), and Kansas City Southern Industries (NYSE: KSU), both
owners in Mexico's busiest railway, Transportacion Ferroviaria Mexicana, S.A. de
C.V. (TFM), announced that TFM will acquire the Mexican government's 24.6%
ownership of Grupo TFM. The acquisition of the government's ownership is planned
to occur during the third quarter of 2001.
The Mexican government's 24.6% share of Grupo TFM is valued at approximately
$249 million. Subtracted from that total purchase price will be approximately
$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. The remaining portion of the purchase price will be paid at the TFM
level from a combination of cash and debt financing. The purchase will eliminate
the government's ownership in Grupo TFM.
Headquartered in Mexico City, TMM is the premier Mexican multimodal
transportation company and logistics provider. Through its branch offices and
network of subsidiary companies, Grupo TMM provides a dynamic combination of
ocean and land transportation services within Mexico. TMM also has an ownership
interest in Transportacion Ferroviaria Mexicana (TFM). Visit Grupo TMM's web
site at http://www.tmm.com.mx. The site offers Spanish/English language options.
For free fax on demand information, dial 1-800-PRO-INFO and enter the company's
symbol: TMM.
KSU is a transportation holding company whose primary subsidiary, The Kansas
City Southern Railway Company, is one of seven Class I railroads in the United
States. KSU also owns the Gateway Western Railway, as well as having investments
in the Texas Mexican Railway, Transportacion Ferroviaria Mexicana (TFM) and the
Panama Canal Railway Company. The combined rail network comprises approximately
6,000 miles of rail lines that link commercial and industrial markets in the
United States and Mexico.
TFM carries over 40% of Mexico's rail cargo and connects with the U.S. rail
system at the primary Mexican-United States rail gateway of Laredo, Texas. Visit
TFM's web site at http://www.gtfm.com.mx. The site offers Spanish/English
language options.
--------------------------------------------------------------------------------
Included in this press release are certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements are based on the beliefs of the Company's management as well as on
assumptions made. Actual results could differ materially from those included in
such forward-looking statements. Readers are cautioned that all forward-looking
statements involve risks and uncertainty. The following factors could cause
actual results to differ materially from such forward-looking statements:
global, US and Mexican economic and social conditions; the effect of the North
American Free Trade Agreement on the level of US-Mexico trade; the condition of
the world shipping market; the success of the Company's investment in TFM, S.A.
de C.V. and other new businesses; risks associated with the Company's
reorganization and asset sale programs; the ability of the Company to reduce
corporate overhead costs; the ability of management to manage growth and
successfully compete in new businesses, and, if necessary, the ability of the
Company to refinance its indebtedness on favorable terms. These risk factors and
additional information are included in the Company's reports on Form 6-K and
20-F on file with the Securities and Exchange Commission.
--------------------------------------------------------------------------------