TNT mulls spin-off of mail unit
TNT is considering a listing or entering a partnership for its mail business. The announcement on Thursday saw the company’s shares rocket 6% to a 19-month high.
In recent times, TNT’s mail unit has suffered from e-substitution, a decline in mail volumes and increased competition from liberalisation.
A company statement said that The European Mail activities will focus on value realisation through partnerships or sale and ultimately concentrate on the large countries where TNT Post has obtained strong market positions: Germany, the UK and Italy.
TNT announced in December that “mail activities will over time be prepared for partnership options including possible future mail incumbent consolidation”. This was followed in February by a statement that added: “Preparations in Mail NL have started, to enable the entering into partnerships.”
On Thursday the company said that “in order to explore the best structure in which a continued success for the Mail business can be achieved, an internal legal and financial carve-out will be realised, documentation will be prepared, partnership discussions pursued and alternative positions assessed, including a (partial) listing or IPO of the Mail business.
“A final decision on the future positioning of the Mail business will require preparation time and depends on a full assessment of all possible alternatives; the required clarity on the regulatory position on the USO in the Netherlands as well as obtaining all necessary approvals from TNT’s shareholders and advice from TNT’s works councils.”
Commenting today, TNT’s chief executive Peter Bakker said: “Today we announce further steps in implementing our Vision 2015 strategy. These steps see TNT continue the transformation towards leadership in Day Definite Delivery services and furthermore aim to explore the best position for its Mail business for continued success, amongst others via partnerships or IPO. Vision 2015 is pursuing the optimal outcome for all stakeholders. Its implementation will require some time during which we will provide regular updates on our progress.”
