Deutsche Post Makes Agreed $315.5 Million Takeover Offer for UK Mail
September 28 2016 - 3:39AM
Dow Jones News
By Natascha Divac
FRANKFURT-Germany's Deutsche Post DHL Group said Wednesday it
has agreed to acquire UK Mail Group for 242.7 million pounds
($315.5 million) to strengthen its position in the U.K. parcel
market.
Under the terms of the offer, shareholders would receive 440
pence in cash for each UK Mail share.
Deutsche Post, Europe's leading parcel-delivery company, said
the offer represents a premium of around 43% to UK Mail's closing
price of 307.5 pence on Sept. 27.
UK Mail's directors consider the terms of the offer to be "fair
and reasonable," and intend to recommend unanimously that
shareholders vote in favor, Deutsche Post said.
"With this acquisition, we will further extend our network and
have a strong foothold in Europe's three largest e-commerce
markets, the U.K., Germany and France, which account for over 60%
of online retail in the continent," said Juergen Gerdes, board
member at Deutsche Post.
Deutsche Post said the acquisition would deliver "significant
synergy benefits."
"The board believes that UK Mail will benefit significantly from
becoming part of Deutsche Post DHL, and will be better positioned
to continue to develop our parcels and mail businesses with the
benefit of Deutsche Post DHL's greater financial and operational
resources," said Peter Kane, Chairman of UK Mail.
UK Mail is one of the largest integrated mail and parcel
operators within the U.K., offering parcel and mail delivery
solutions worldwide. It has a national network of more than 50
sites and 2,400 vehicles.
Write to Natascha Divac at natascha.divac@wsj.com
(END) Dow Jones Newswires
September 28, 2016 03:24 ET (07:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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