PostNL said today it still plans to sell its 29 per cent stake in TNT Express “over the mediumterm” despite the failure of UPS’ €5.16 billion takeover of the Dutch express company.
The Dutch postal operator had agreed to sell the stake to UPS for about €1.54 billion aspart of the US company’s €9.50 per share offer for TNT.
Reacting to the announcement that UPS and TNT expect the European Commission to veto theiragreed merger, PostNL CEO Herna Verhagen said: The transaction between UPS and TNT Express wouldhave maximised the value of our stake in TNT Express. If, upon a formal decision of the EuropeanCommission, the acquisition of TNT Express is not pursued, we expect that we will monetise thestake over the medium term to create better value for shareholders, after we have seen stabilityreturn to TNT Express.”
The value of the 29 per cent holding has been nearly halved by the 42 per cent slump in TNT’sshare price today. PostNL’s own share price crashed by 34 per cent as investors worried about thecompany’s financial situation. Verhagen’s comments suggest PostNL will retain the TNT stake until aprice closer to the planned UPS sale price can be achieved.
PostNL stressed: “As a major shareholder of TNT Express, PostNL will fill in this role in thebest interests of PostNL and our shareholders. In the meantime, we will continue our daily businessas planned, including the reorganisation in Mail Netherlands and the rollout of the new logisticsinfrastructure in Parcels.”
In November 2012 PostNL said the group’s overall underlying cash operating profit for 2012would be at the lower end of the €110 million to €160 million range, which would be a 2-4 per centprofit margin.
