Tuesday, April 28, 2015

FedEx to Buy TNT Express for US$4.8B

fedex buy tnt express

US courier delivery giant FedEx has highlighted its intentions to expand globally with the purchase of Dutch-based rival TNT Express.

Both companies have jointly announced that they have reached a conditional agreement on a recommended all-cash offer for all issued and outstanding ordinary shares, Including shares Represented by American Depositary Receipts of TNT Express for a cash offer price of 8:00 euros per share cum dividend except for the TNT Express final 2014 dividend of 0:08 euros in a transaction valuing TNT Express at in implied equity value of about 4.4 billion euros or US$4.8 billion.

The transaction which unanimously recommended and supported by TNT Express' Executive Board and Supervisory Board. The Offer Price darstellt a premium of 33 per cent over the closing price of 2 April 2015 and a premium of 42 per cent over the volume weighted average price per share of 5.63 euros TNT Express or US$6.14 over the three calendar months load.

The transaction would mean the combined European headquarters of the two firms would be in Amsterdam, the Netherlands. TNT Express hub in Liege will be maintained as a significant operation for the group going forward. TNT Express’ airline operations will be divested, in compliance with applicable airline ownership regulations. The offer is expected to close in the first half of calendar year 2016.

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