Sinotrans to end TNT partnership
Sinotrans Ltd (598.HK) chairman Zhang Bin said the company’s joint venture with courier service provider TNT Holdings will end when the agreement expires in May.
The decision to end the partnership was reached three years ago when TNT expressed an intention to seek a three-way partnership.
“We have appointed a working team to liquidate the joint venture when it expires,” Zhang told reporters at a news briefing.
The joint venture was formed 15 years ago.
Zhang said the company and peers in the industry, have not been affected by the China government’s requirement that express services operators register for ‘entrustment’ with China Post.
Last year, the Ministry of Information Industry issued a document requiring operator to register for ‘entrustment’ with China Post in order for them to deliver letters.
“Since we registered three months ago, we have not been affected by the registration in any way and I believe this is true of other operators,” he said.
Sinotrans will be offering 1.554 bln H shares at 1.67-2.29 hkd per H share for its listing in Hong Kong.
The company has entered into strategic placing agreements with DHL Worldwide Express BV for the latter to subscribe to 5 pct of Sinotrans issued share capital immediately after completion of the global offering.
At the same time, UPS Air Couriers of America Ltd, Exel plc and Nissin Corp have agreed to respectively subscribe for 35 mln usd, 10 mln usd and 1 mln usd worth of Sinotrans shares at the offer price.
