KANSAS CITY, Mo. — Kansas City Southern, co-owner of Mexico’s biggest railroad, said Thursday that the face value of a certificate for a tax claim expected from the Mexican government is about $206 million, the Kansas City Star reported.
The tax claim involves Grupo Transportacion Ferroviaria Mexicana SA, or Grupo TFM, a railroad that is jointly owned by Kansas City Southern and Grupo TMM SA.
Previous reports have indicated that with adjustments for inflation and interest charges, the amount of the tax claim could ultimately reach $900 million.
Recently a three-judge panel from Mexico’s federal court ruled in Grupo TFM’s favor and against the government on a tax case from 1997.
Kansas City Southern and Grupo TMM said they are optimistic they will prevail if the case is appealed.
But Bill Galligan, a Kansas City Southern spokesman, said the company wants to emphasize to investors that this tax claim still has not been received.
“We felt it was important to know that there are other steps that have to be taken before the process is completed,” he said. “We don’t know what the final amount will necessarily be.”
Some analysts have speculated that the tax award may allow Grupo TFM to pay its two owners a dividend for the first time since they bought the railroad from the government in 1996.