DHL to buy 5% of Sinotrans
DHL Worldwide Express, the courier group, has agreed to buy a 5% stake in Sinotrans, its Chinese partner, for $60 million (£36.6 million).
HANDELSBLATT (GERMANY) 12th February 2003
DEUTSCHE POST SUBSIDIARY DHL HOPES FOR 5% STAKE IN SINOTRANS
International logistics group DHL Worldwide Express, a subsidiary of German postal service operator Deutsche Post, is hoping to acquire a 5 per cent stake in Sinotrans, the Chinese logistics company which is undergoing privatisation. The German group is reported to have set aside a sum of $65m for the purchase. Altogether, Sinotrans is issuing shares worth a total of $436m on the Hong Kong stock exchange.
Deutsche Post has declined to disclose whether it is planning to acquire further shares in Sinotrans, but analysts do not expect the German group to increase its stake in the immediate future. Currently, DHL is reported to hold a 40 per cent share of the Chinese logistics market, and business in China is reported to show a 40 per cent growth rate for the company. Although, currently, Japan remains its main Asian market, China is also described by management as a key area in the company’s strategy for Asia.
Abstracted from Handelsblatt in German Europe Intelligence Wire – Copyright 2003 Financial Times Information. Source: Financial Times Information Limited.
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