TNT completes sale of logistics division
TNT N.V. announces that it has completed the sale of the logistics division to affiliates of Apollo Management, L.P., a leading private equity firm with offices in New York, London and Los Angeles. With the completion of this transaction, Dave Kulik will become CEO of the new Company and therefore resigned from the TNT Board of Management. The now completed sale to Apollo was announced on 23 August 2006. On 29 September 2006 the shareholders’ meeting approved the transaction and on 24 October 2006 the European Commission granted clearance under the EU Merger Regulation. The total transaction value is euro 1,480 million on a cash and debt free basis, of which approximately euro 15 million has been received in the form of a 5% equity stake in the new company.
Taking into account the earlier announced deductions by the buyer for finance leases, pension and other employee liabilities, and various costs for separation and re-branding, TNT received proceeds of around euro 1.3 billion; these proceeds are before deduction of various deal related expenses at TNT of up to euro 100 million as previously explained. TNT will return most of the proceeds to its shareholders by way of a share repurchase program with a value of up to euro 1.0 billion. Note that final transaction figures can only be calculated definitively after completion, based on completion accounts including provisions, as is customary in transactions of this size.
