GeoPost drops EUR 500m Seur acquisition
GeoPost has decided to drop its planned €500m acquisition of a majority stake in leading Spanish parcels company Seur, Spanish media reported.
The French group had taken the decision following a due diligence process on account of the “ development of the Spanish economy, especially in the transport sector”, the Europa Press agency said, citing a statement from Seur. The Spanish economy has worsened dramatically in recent months, impacting on demand and volumes in the transport industry. This has also hit the revenues and profits of companies in the express and parcels sector.
GeoPost, which already holds 19.6% in Seur, had planned to buy a further 52% stake by exercising its right to counter a rival bid. This would have given it a controlling holding of nearly 72% in the company. On August 1, British financial investor Doughty Hanson had offered €520m for a 52% stake in Seur that a group of small shareholders had put up for sale as a packet.
Spanish newspaper Expansión cited the franchisee grouping seeking to sell its shares as saying it would now “examine all possible options, including that of Doughty Hanson”. But the UK investor might now also reduce its offer, the newspaper commented.
Seur, with revenues of €665m in 2007, has a complex, decentralised ownership structure comprising regional franchisees who also own small stakes in the parent company Seur SA. Seur has 85 franchisees in total controlled by 54 companies.
GeoPost has built up a stake of 19.6% in Seur by buying various franchisees in recent years. The independent franchisees seeking to sell their holdings represent 52% of Seur capital, 65% of the franchises by number, and generate 56% of gross profits, according to Spanish media.
