Danzas to acquire ASG

Danzas to acquire ASG Group – Further strengthening of Deutsche Post Group's worldwide network
26th April 1999

Bonn – The international logistics provider Danzas, which is a subsidiary of Deutsche Post AG, is extending its global service capabilities further by acquiring the ASG AB (publ)('ASG') Group. A tender offer is being announced to all ASG shareholders, at a price of SEK 265 per share of Series A and B. The ASG AB Board of Directors is recommending that shareholders accept the bid.

Stockholm, Basel, Bonn, 26 April 1999. Deutsche Post CEO Dr. Klaus Zumwinkel, ASG Chairman Christer Gardell, Danzas CEO Peter Wagner and ASG CEO Jörgen Ekberg announced today in Stockholm a recommended tender offer by Danzas for ASG. The various ASG business units – Logistics, Road transport, Air & Sea and Specialist Companies – are to be a fully integrated part of the logistics operations of Danzas.

Strong, comprehensive network covering all of Europe
Following the proposed acquisition of Nedlloyd's parcel and logistics business by Danzas and Deutsche Post, the Danzas network in Europe will now be further strengthened by the acquisition of ASG. In particular, Danzas' presence in the Scandinavian region will be significantly enhanced. After the planned integration of Nedlloyd and ASG, the enlarged group will operate a competitive network for the benefit of customers throughout Europe. Operating under the Deutsche Post umbrella, this will constitute the core of the logistics services provided by

Danzas.
Adding to a leading market position

ASG's business will complement the range of services offered by Danzas and its parent company, Deutsche Post. As Peter Wagner puts it: "With the ASG acquisition we are continuing to strengthen our leading market position. Above all we are enhancing our geographical reach and thus offering our customers an even more competitive service from a single source." He is convinced, that "bringing ASG into the Danzas Group is the right step for both firms, given the current concentration process in the highly competitive logistics industry where breadth of services and globalization count as the primary factors."

The Deutsche Post CEO, Dr. Zumwinkel, believes the planned acquisition to be another significant milestone in the group's strategy of internationalization. In Dr. Zumwinkel's words: "We are improving the logistics capabilities offered in the Scandinavian region by our Danzas subsidiary. At the same time, we are continuing to improve Deutsche Post's parcel delivery network which will serve 330 million customers in Europe."
"ASG's customers will gain access to a truly global network and the broadest possible service from a single source," says Jörgen Ekberg, CEO of ASG. Deutsche Post, Danzas and ASG should be able to offer the best network for road transport and parcel services in Europe and a global network for air & sea freight. These companies are the only truly pan-European partner for integrated third-party logistics.

ASG: strong in the Scandinavian region

ASG is one of the leading forwarding and logistics companies in the Scandinavian region. The group is active in the following areas: road transport, ocean and air freight, logistics and special services. Road transport includes parcel as well as part load and full load services within the Scandinavian region and between Scandinavia and continental Europe. In 1998, ASG's 5,700 employees generated sales of SEK 12 billion (EURO 1.35 bn./CHF 2.16 bn./DEM 2.64 bn.). Profit before tax came to SEK 176 million (EURO 19.8 M/CHF 31.6M/DEM 38.7 M).
ASG AB has captured a particularly strong position in the part load and full load market. The Swedish firm is also one of the leading air freight providers in northern Europe and ranks number one in the region in logistics. Its special services are targeted primarily at niche markets such as the Baltic States.

Management continuity

ASG's successful corporate management team will continue to run the company after the transaction is completed. ASG will remain a separate organization with its strong brand name. It will constitute a business area within the Danzas Group, responsible for the Nordic and Baltic area. ASG's CEO, Jörgen Ekberg, will additionally join the Danzas Group Management and take charge of the Nordic and Baltic Business Unit.

Tender offer

Danzas has entered into mutually binding agreements, subject to the receipt of EU antitrust approval, to purchase ASG shares representing 52.4% of the votes of ASG at the offer price. The ASG Board of Directors has agreed to recommend the offer.
The tender offer, which will be launched shortly, values ASG's issued Series A and Series B share capital at SEK 3,328 million (EURO 374 M/CHF 598 M/DEM 731 M). The offer price of SEK 265 per share represents a 23.8% premium over the closing price on April 22, 1999, of SEK 214 per ASG Series B share, the last trading day before trading in ASG shares was suspended, and a 38.2% premium over the average closing price for the last 20 trading days. The tender offer will be run under Swedish stock exchange guidelines. Completion will be subject inter alia to approval by the EU.