Features Latest News — 18 February 2015

SatelliteAustralian Transport and logistics giant Toll is turning Japanese with the announcement that Japan Post will acquire oll Holdings for $AUD6.5 billion as part of the postal service’s global expansion plans.

Toll announced today that Japan Post has made its intention to buy the Australian logistics giant for $9.04 per share in cash, which would give it market capitalisation of $6.5 billion and an enterprise value of just over $8 billion which includes $1.53 billion of net debt.

Under the proposed purchase, Toll would be run as a separate division within Japan Post and retain the Toll name. Toll management will remain in place, and CEO Brian Kruger reporting directly to Japan Post CEO Toru Takahashi.
Toll’s board has given the deal its blessing and Chairman Ray Horsburgh has said the board has recommend to shareholders that Toll joins with Japan Post.

Japan Post is one of the world’s leading postal and logistics companies and Toll is the largest independent logistics group in the Asia Pacific.

“Together, this will be a very powerful combination and one of the world’s top five logistics companies,” said Horsburgh

The next step for Toll will be to appoint an independent expert to prepare a report on whether the offer is in the best interests of Toll shareholders or not. The report is expected to be available to shareholders by in mid-April.

Toll CEO Brian Kruger said he was optimistic that the report would recommend the bid.

“The proposed combination is a reflection of the strategic value of our business and our strong footprint throughout the Asia Pacific region,” said Kruger.

It will deliver great opportunities for our staff, customers and strategic partners. The great Toll culture built on safety and operational excellence will work well alongside Japan Post’s established values. I am delighted to have been invited to lead this powerful new division of Japan Post and look forward to working with the rest of the group,” he added.

President and CEO of Japan Post, Toru Takahashi agreed and said that he believes the combination of Japan Post and Toll will be a transformational transaction for both companies.

“We are very pleased we have been able to reach agreement. In partnership with Toll we are starting a new chapter of looking outward and becoming a leading global player,” said Takahashi san
It is anticipated that Toll shareholders will have the opportunity to vote on the proposal, which represents a 49 per cent premium to Toll’s closing price on Tuesday of $6.08, at a meeting to be held in May.

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