TNT expects to clinch logistics deal soon
Dutch mail firm TNT (TNT.AS: Quote, Profile, Research) said on Wednesday it should reach a deal soon on the sale of its underperforming logistics business, which it expects to be bought for more than 1 billion euros (USD 1.3 billion).
Private equity firms Apollo Management and PAI were shortlisted and were competing to clinch a deal, sources familiar with the matter have told Reuters.
“TNT NV expects to reach an agreement shortly about the sale of the Logistics division,” the company said in a statement, without giving a timeframe.
“Further announcements will follow, if and when appropriate,” TNT said.
TNT shares rose around 1 percent to 29.49 euros in early trade on Amsterdam’s Euronext exchange.
TNT (TP.N: Quote, Profile, Research) announced its intention to sell its underperforming logistics activities to concentrate on mail and express delivery — which represent about a quarter of group revenue — in December.
TNT’s logistics business has a book value of about 1.15 billion euros (USD 1.5 billion), according to TNT’s 2005 annual report, and the company has said it expects to make a profit on the sale and close it in the second half of the year.
Rabo Securities analyst Thijs Berkelder said he expected TNT to book proceeds from the sale of 1.5 billion euros, based on a selling price of 1.8 billion euros.
“The better than expected proceeds as such are not the key reason to step in TNT but more the fact that they indeed seem to have succeeded in selling their weak performing division,” Berkelder said in a client note.
