Tag: Deutsche Post

Deutsche Post AG has reached an agreement with Exel plc, London, concerning the planned acquisition of Exel by the Company. The price for each Exel share is 900 Pence (13.30 Euro) and 0.25427 shares of the Company. As a result, based on the closing price of the share of the Company on September 16, 2005, the aggregate consideration per Exel share amounts to 1,244 Pence (18.39 Euro) and the total value of the transaction is approximately 3.7 billion Pounds Sterling (approximately 5.5 billion Euro) (taking into account proceeds from the exercise of Exel stock options). Approximately 72% of the acquisition price will be paid in cash, the remainder by issuing new shares from the authorized capital of the Company. The Company’s share capital will thus increase by approximately 7%. Upon completion of the transaction, Deutsche Post World Net intends to appoint John Allan as head of the enlarged business unit LOGISTICS, comprising the combination of Deutsche Post World Net’s and Exel’s existing logistics activities. Deutsche Post World Net intends that John Allan will lead the integration process. The headquarter of the combined business is intended to be located in Bracknell, United Kingdom.

Deutsche Post is set to announce an agreed takeover of Exel on Monday that values the UK logistics company at about GBP3.6bn (USD6.5bn) and could create the world’s biggest logistics group. The German group was holding a supervisory board meeting on Friday to approve the deal, according to people close to the situation. Exel board members are due to convene on Sunday to agree to the terms of the deal. Deutsche Post is offering a mix of cash and shares that values Exel at around GBP12.40 a share – considered to be at the higher end of expectations. The shares component will be 25-30 per cent. The German group is also proposing cost synergies of EUR200m (USD244m) a year. John Allan, chief executive of Exel, will be made head of the enhanced logistics division which will be run out of Bracknell in the UK. He has also been offered a place on the management board.