Package delivery giant United Parcel Service, Inc. (UPS: Quote) on Thursday said it would commence the 9.50 euros per share public cash offer for the Netherlands-based TNT Express NV (TNTEF.PK,TNTEY.PK) on June 22, following a deal reached early this year.
The two firms had announced the deal in late March, when UPS agreed to buy the Dutch rival for a sweetened offer of 9.50 euros cash per share. The transaction values TNT, Europe's second-largest package delivery firm, at around 5.16 billion euros ($6.77 billion).
The deal will be the largest by UPS in its history and will give the firm an edge over its rival FedEx Corp. (FDX) in Europe.
TNT Express customers will benefit from access to the North American market as well as access to UPS's logistics solutions like its global freight forwarding and distribution capabilities.
UPS has made the offer through its wholly-owned unit UPS BidCo B.V. The Executive Board and the Supervisory Board of TNT Express support the offer and unanimously recommend it to the shareholders.
The deal has received positive advice and opinion from the Central Works Council and the European Works Council, respectively.
An extraordinary general meeting of shareholders of TNT Express will be convened on August 6, where the offer will be discussed.
The offer period will commence at 09:00 hours, Amsterdam time June 22 and will expire on August 31 at 18:00 hours, Amsterdam time, unless the offer period is extended.
PostNL N.V., holding around 29.8 percent of TNT shares, has irrevocably undertaken to tender all shares into the offer.
After the completion of the deal, the current members of the Executive Board, Marie-Christine Lombard and Bernard Bot, will continue to serve as members of the Executive Board.
The Supervisory Board will consist of Dan Brutto, Jim Barber, Jeff Firestone, Shemaya Levy and Margot Scheltema.
UPS closed on Wednesday at $78.17, up $0.01, on 2.58 million shares.
TNT Express ended marginally up at 9.16 euros in Amsterdam on a volume of 3.37 million shares.
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by RTT Staff Writer
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