Global Railway Industries nears end of trail

Lachine, Quebec-based Global Railway Industries (GRI) announced Monday that both Glass Lewis & Co., LLC and Institutional Investors Services have recommended that shareholders of Global vote for the sale of the company’s operating subsidiary, CAD Railway Industries Ltd., and the subsequent “winding up of the company” at a special meeting of shareholders to be held on August 30, 2011. ISS and GL are independent international corporate governance analysis and proxy voting firms.

The company said a Glass Lewis analysis stated: “[W]e find there is adequate strategic rationale to support the proposed transaction given uncertainty regarding the Company’s operations and the certainty of value to be received by shareholders as a result of the cash consideration.”

GRI also said ISS, in a statement, said that “after the sale of all the operating business, the decision to wind up the company and distribute the final proceeds is a logical next step.”

“We are pleased that the independent third party recommendations of ISS and GL support the Board’s determination that the sale of CADRI and the winding up of the Company are in the best interests of Global’s shareholders,” said Global Railway Industries Chairman Thomas Dea.