Final regulatory approval given for Japan Post to buy Toll Group
Toll Group said yesterday that it has now received all regulatory approvals needed for its takeover by Japan Post. The company announced yesterday that the final approval came from New Zealand’s regulator, the Overseas Investment Office.
Melbourne-based Toll said the approval means it is on track to seek a shareholder vote on the proposal next week.
A meeting is planned for Wednesday 13 May at the Melbourne Convention Centre. The proposal requires a vote by the holders of at least 75% of shares, with the majority in favour.
Toll said it believed a deal could be implemented, and shareholders paid, on 28th May 2015.
The board of directors at the Australian logistics giant is unanimously supporting the proposal and urging shareholders to vote in favour.
“On track”
Commenting on the OIO approval, Toll Group managing director Brian Kruger said: “Following the approval from New Zealand’s Overseas Investment Office, we have now received and satisfied all regulatory conditions.
“I am pleased to say we are on track for shareholders to vote on this compelling offer at the Scheme meeting next week.”
Japan Post made a $5bn offer for Toll Group back in February, a 49% premium on the company’s share price on February 17, 2015. The state-owned postal service is looking at the acquisition as a major leap into the international logistics market.
The Post wants to considerably expand its international business in the Asia-Pacific region and beyond to counter the declining postal market at home.
Taking over Toll Group would potentially increase Japan Post’s revenue by around 30%. Toll had sales of A$8.8bn ($6.9bn USD) in 2014, and profits of A$293m ($229m USD).
The Toll business includes large logistics operations for the energy and mining sectors, the government and defense sectors, and contract logistics for major corporations. The Group also operates express delivery services, and is growing its business-to-consumer delivery business in the Australian e-commerce market.
