Results trigger sell-off
TNT Post Group coupled the announcement of a 26 per cent surge in net profits to an all-time high last year with the revelation that the Dutch government wants to cut its stake from 43.3 per cent to 10 per cent in the post. Net income rose to Euro526 million from Euro419 million on revenues up 16.4 per cent to Euro9.94 billion from Euro8.53 billion. TPG said it expects to grow net income in 2001 by 20-25 per cent, assuming stable exchange rates.
The company said the Dutch government will initially sell a 7.3 per cent stake in the company, reducing its holding to 36 percent. The sale of the stake, currently worth around Euro800 million, began on the same day the results were revealed. Ultimately, the government wants to own just 10 per cent of the company, which was privatised in 1998. “The government already intended to cut its stake to a third before 2004, but the real news is that it is now going back to 10 per cent.” Said Ad Scheepbouwer, TPG’s chief executive. He said the state would not sell another stake in TPG before January next year.
The reduction of the government’s holding to 10 per cent will make it much easier for TPG to form alliances with other companies, especially in the USA.
