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UPS Financing In Place For The Purchase Of TNT Express By Eddy Metcalf |
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May 12, 2012 – On Friday UPS announced it has the
necessary financing in place for its intended
recommended public offer for TNT Express. On March 19,
2012, UPS and TNT Express jointly announced conditional
agreement on a recommended all-cash offer of EUR 9.50
per ordinary share for TNT Express (the "Offer"). The
transaction values TNT Express at approximately $6.77
billion.
The Offer values 100% of the issued and outstanding TNT
Express ordinary shares at approximately EUR 5.16
billion. UPS will finance the Offer by using
approximately EUR 3.7 billion of available cash on its
balance sheet and approximately EUR 1.46 billion in debt
through existing credit facilities.
“With this combination, both UPS and TNT Express will
significantly enhance their ability to serve our
combined customers’ complex global logistics needs. The
additional capabilities and broadened global footprint
will support the growth and globalization of our
customers’ businesses. At the same time, this positions
us for future growth, which will benefit our employees
and shareowners,” said Scott Davis, UPS Chairman and
CEO. |
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“This combination will significantly enhance the capabilities of
two strong companies.
I am convinced that together we will be the supplier and
employer of choice in the express delivery industry. Our
customers will greatly benefit from our enhanced combined
service offerings. To my
77,000 colleagues I say that the combination will create unique
opportunities for development and growth in which we can
participate,” said Marie-Christine Lombard, TNT Express CEO.
In line with regulatory requirements, UPS will submit a request
for approval of its Offer Memorandum to the Netherlands
Authority for the financial markets. The Offer Memorandum is
expected to be published and the Offer is expected to commence
during the second quarter in accordance with the applicable
timetable.
TNT Express. is an international express and cargo delivery
services company with headquarters in Hoofddorp, Netherlands.
The firm has fully owned operations in 65 countries and delivers
documents, parcels and pieces of freight to over 200 countries.
The company operates road and air transportation networks in
Europe, the Middle East and Africa, Asia-Pacific and the
Americas. It employs 77,000 people and runs a fleet of 30,000
road vehicles and 46 aircraft. The company recorded sales of
over €7.2 billion in 2011.
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