Mayne gets $456m for transport arm
Mayne yesterday completed the shift to becoming a focused health company, selling off its transport arm for $456 million.
Lindsay Fox’s unlisted Linfox group, Paul Little’s listed Toll Holdings and Deutsche Post’s DHL divided the spoils between them.
The trade sale means an end to the demerger process to float the transport business under the brand name Loomis.
The sale price is below the $500 million most analysts had tipped but Mayne said the trade sale option was the best way to release value immediately.
“While Mayne’s preparations for a demerger were being progressed concurrently with the trade sale process and were on schedule, the trade sale provides a more immediate and certain value for shareholders,” said Mayne chief executive Stuart James.
Under the deal Linfox will buy Mayne’s Australian and Asian logistics and Armaguard business, DHL Express will buy the Canadian express business and Toll grabs the Australian express business.
Most of the sales will be finalised by early 2003, with Toll taking charge of the $320 million of turnover in the express business from next month.
“The sale of the non-health logistics businesses will allow Mayne to sharpen its strategic focus on its core business in health care, health services and pharmaceuticals,” said Mr James.
The DHL transaction is also subject to regulatory approval in Canada.
Mayne shares fell 3c to $3.57 yesterday before the announcement was made. At their peak last year they reached $7.51.
