The Canadian trucker group that operates the Polaris freight train will be sold to Canadian firm Covenant Transport Ltd., said the company in a regulatory filing.
The company said the transaction is expected to close in the first quarter of 2020.
The transaction is subject to regulatory approvals, including an offer from the Canadian Transportation Agency and approval from the U.S. Securities and Exchange Commission, Covenant said in the filing.
Covenant Transport, which operates two freight trains from Edmonton to Winnipeg, said the Polaris deal includes a $400-million facility that would bring the company to the United States for freight shipments, the company said.
The Polaris train is scheduled to be built and operational by 2024.
It will operate for five years and can transport more than 200,000 passengers.
The train was launched in 1988 and is used to deliver goods for both freight and passenger companies.
Coordinated Transport Solutions Inc., the company that manages the Polaris train, is owned by a group of investors led by the billionaire entrepreneur David Katz.
The sale is expected be completed by the end of the year, Covenant Transport said in its filing.