Tag: Courier/Express/Parcels

The hunter hunted? DPWN targeted by private equity company

Posted by | Sep 7, 2006 | |

DPWN CEO Klaus Zumwinkel has made a public statement welcoming the prospect of a major purchase of equity by Blackstone, the very large American private equity company. “Private equity and hedge funds are welcome because they invest and lift the shares higher” he said in an interview with a newspaper.
Yesterday rumours emerged in the US, UK and German stock markets that Blackstone was planning to buy a 10% stake in the company. The German state investment bank KfW initially denied that there would be a sale to Blackstone.
A further tranche of DPWN has just been sold by the German government through KfW, increasing the liquidity of the stock and making it easier for Blackstone to buy into the corporation. A 10% stake would make Blackstone the largest stockholder after the German government. Blackstone is also a major investor in the other big German privatised company, Deutsche Telecom.
Transportation infrastructure has been the target of substantial interest by private equity groups. Their motivation varies. Some –such as the pension funds are looking for long-term stable income stream and are willing to pay a premium. An example of this was the ‘ADMIRAL’ consortium that bought Associated British Ports earlier this year.

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GeoPost may pick 10% in DTDC

Posted by | Sep 7, 2006 | |

Geopost of France may pick up 10% stake in Bangalore-based courier and express company DTDC, in which Anil Ambani-controlled Reliance Capital holds 40%.

Subhasish Chakraborty, chairman and managing director of DTDC, who along with his family, currently holds 60% and management control, is expected to dilute stake to 50%.

Mr Chakraborty told ET said he is in talks with a few international players for a tie-up. But he refused to divulge further details.

One of the three leading players in the domestic industry, DTDC is steadily increasing its foreign presence. It has already set up its own network in all Saarc countries, the US and the UK. Recently, it tied up with a Pakistani company ACB Care, and signed an agreement with the Chinese Kerry Logistics, to foray into two growing markets in terms of India’s bilateral trade.

DTDC now enjoys a network of 3,700 centres comprising franchisees and own offices, and clocked revenues of Rs 125 crore on standalone basis during last financial year, and Rs 250 crore cumulatively with franchisee revenues. DTDC now aims to grow to Rs 500 crore revenues by ’10.

Sources said DTDC is also looking at taking over small regional players to grow in the domestic market. It had initiated negotiations with Mumbai-based Speedage Express Cargo Services, but Speedage was subsequently taken over by TNT last week. Sources said DTDC would soon announce a few mergers that will propel the company into the top league in the domestic market.

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ANC Express Leicester wins ROSPA award

Posted by | Sep 6, 2006 | |

ANC Express Leicester has won one of the prestigious RoSPA Occupational Health and Safety Awards. The Bronze award will be presented at a special ceremony at the Hilton Birmingham Metropole Hotel, on Thursday 11th May during Safety and Health Expo 2006, the UK’s premier health and safety at work exhibition. The RoSPA Occupational Health and Safety Awards 2006 are sponsored by NEBOSH (The National Examination Board in Occupational Safety and Health).

David Rawlins, RoSPA Awards Manager said “ANC Express has demonstrated how seriously they take health and safety management and are a fine example to many other companies. We would like to see more organizations following their lead by providing a positive example”. Julie Fenwick a Director of ANC Express Leicester said, “We are thrilled to win this award, and it is recognition of all the hard work put in by all the team at the distribution centre and shows how seriously we take Health and Safety issues.”

The RoSPA Awards are not just about reducing the number of accidents and cases off ill-health at work; they are also about ensuring that organizations have good health and safety management systems in place. They help to reinforce the message that good health and safety is good business and clearly demonstrate an organisations commitment to the achievement of high levels of performance in the crucial area.

The President of RoSPA, Baroness Anne Gibson of Market Rasen, Deputy President Lord Jordan of Bournville and Vice-President Lord Brougham & Vaux hosted gala dinners on May 10th and 11th for the representatives of award-winning organizations with the popular television personality Ronnie Corbett as guest speaker.

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ANC Express accelerates growth

Posted by | Sep 6, 2006 | |

After a period of continual growth ANC has recently invested in a new GBP 400,000 depot in Kendal. The new depot represents the long term commitment of award winning* ANC to maintain high standards of delivery and collection in the area. Not only will the new depot create local jobs, but it will also enable ANC to considerably expand its services in the area.

New employees include Depot General Manager Kerry Doree, who brings a wealth of experience to the role having worked in the industry for over 18 years. Kerry explained “the new depot is perfectly positioned to serve the area with the nearest ANC depot being Carlisle. ANC offer the best service levels in the industry, this new depot will help us boost sales and assist our customers to be more competitive. ANC’s commitment to a ten year lease is demonstrable of our strong desire to expand on an already first class service.”

*ANC recently won Business of the Year for Staffordshire and North Cheshire, along with a RoSPA Health and Safety Award and three regional nominations for The National Business Awards comprising of Health and Safety, Employer of the Year and Business Improvement Through People.

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TNT – adjusting estimates for announced logistics sale

Posted by | Sep 6, 2006 | |

TNT announced the sale of Logistics for €1.48B ($1.85B). On August 23, TNT announced an agreement to sell its Logistics unit to Apollo Mgmt for €1.48B ($1.85B), predominantly for cash with €15M ($19M) in stock. There is no debt. We expect net proceeds of €1.2B ($1.5B) after deal-related expenses and tax deductions. TNT received 6.9x trailing 12 month EV/EBITDA vs. our 6.1x expectation.

Reducing 07 EPS by 10%. We are adjusting our numbers for the removal of Logistics, partially offset by an expected €1B ($1.25B) share repurchase to be completed by 2Q:07. We have made no changes to our operating assumptions for Mail, Express or Forwarding. Including the effects of both the lost Logistics business and the buyback, the deal is dilutive by €0.25/share ($0.30, or 10%).

Higher valued remaining business units offset reduction in EPS. We believe that TNT’s valuation should increase enough to more than offset the 10% reduction in EPS resulting from the disposal of Logistics. The remaining businesses, Mail, Express and Forwarding each should trade at higher multiples than the 6.9x trailing EV/EBITDA that TNT received for Logistics.

We still see the potential sale of Express as a reason to own the stock. We continue to believe that TNT’s Express business would be a potentially attractive acquisition target. With the expected liberalization of all European post offices over the next few years, we expect TNT’s core mail business to become a growth engine again and the timing seems closer for TNT to sell assets to create cash to grow the core business.

Reiterate Outperform and $42 target price. Eliminating Logistics from ‘07 numbers and adjusting for a share repurchase with the proceeds does not alter our underlying operating assumptions for the remaining divisions. We generally have had greater conviction in our Mail and Express estimates than Logistics, so earnings visibility has improved.

Bear Stearns acted as a financial advisor to Apollo Management in its announced acquisition of TNT Logistics.

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