Deutsche Post DHL Group has sold off most of its small financial holding in Chinese logistics group Sinotrans but is stressing that it remains committed to the two groups’ long-standing Chinese express joint venture.
The German group has reduced its financial holding in Sinotrans Ltd. of 5.16% of total issued shares (equivalent to 11.07% of issued H-shares) by disposing 191,400,000 H-shares representing about 4.16% of the number of total issued shares (equivalent to 8.92% of number of issued H-shares).
DP DHL did not disclose the size of the proceeds but said its initial investment at the IPO in 2003 “has proven a very good financial investment and has contributed to a strong, mutually beneficial collaboration with Sinotrans”. The proceeds would further increase the group's ability to strengthen the foundation for Strategy 2020.
Addressing its future cooperation with the Chinese logistics group, DP DHL emphasised: “We remain positive about Sinotrans Ltd and its strategy. This partial divestiture of our financial stake is in no way related to the stake of Deutsche Post DHL Group in the joint venture of its Express business with Sinotrans Air Transportation Development Co., Ltd.
“Deutsche Post DHL Group is fully committed to the long-term cooperation of its very successful and profitable joint venture with Sinotrans Ltd, the leading Chinese transport and logistics firm. DHL Sinotrans International Air Courier Ltd. has been operating in China since 1986 and has successfully shaped the Chinese Express and logistics industry. It remains committed to retaining and further expanding its market-leading position in China.”
DHL-Sinotrans International, set up in 1986, competes in the fast-growing Chinese international express market with FedEx, UPS and TNT as well as with Chinese and other companies. The company pulled out of the low-price and extremely competitive Chinese market in 2011 after just one year of loss-making operations.
