ABX Air, the main uplift provider for DHL in the USA, has rejected a takeover approach by Astar AirCargo, the smaller cargo airline in which DHL now owns 49%. A deal could have worth some $455
million.ABX Air announced that its board of directors had reviewed Astar’s unsolicited indication ofinterest to acquire the company and had unanimously rejected the proposal as not being in the bestinterest of ABX Air stockholders. In response, Astar withdrew its informal offer.
“We unanimously concluded that our business plan is likely to deliver more value over time toour stockholders than the Astar indication of interest, and therefore, the indication of interestdoes not merit further consideration,” said James H. Carey, Chairman of the Board of Directors ofABX Air. “While the board recognizes that a combination of Astar and ABX Air would likely producemeaningful synergies, Astar’s indication of interest delivers none of the value of these synergiesto ABX Air stockholders,” he added.
Joseph C. Hete, President and Chief Executive Officer, added: “Since becoming a publiccompany in 2003, ABX Air has delivered solid financial performance and attractive returns forstockholders. ABX Air has established itself as a leading source of airlift and aircraft technicalservices through our contract lift services for DHL, our air charter and other airlift servicescovering the Americas, Europe and Asia, and our wide range of technical, maintenance and logisticalservices for other airlines and shippers. Our fleet of all-weather, fuel-efficient wide-body Boeing767s is unique among independent providers of air cargo and air charter services, and highly valuedin the marketplace. We intend to continue to leverage this and our other competitive advantages todeliver value in the future.”
In response, Astar Air Cargo chairman John Dasburg announced that $7.75 per price had been “afull and fair price” but he had decided to drop the informal approach and would “pursue otheralternatives” instead.
Miami-based Astar Air Cargo, with 45 medium-sized cargo planes, is the former DHL Airwaysthat was sold off prior to Deutsche Post acquiring DHL and mostly flies domestic routes for DHL.Wilmington-based ABX Air, with about 100 larger and medium-sized cargo aircraft, is the formerAirborne Express airline disposed of when DHL acquired Airborne Express. It operates flights forDHL and other customers.
