Japan Post, the state-owned postal service operator, has launched a A$6.5 billion takeover bid for ASX-listed Toll Holdings, an offer the Australian logistics firm's board has unanimously recommended.
The A$9.04 per share offer was is a 49 per cent premium to Toll's closing price yesterday, and the shares soared 47 per cent to A$8.93 today. Shareholders on the register as at March 2 would also be entitled to the 13 Australian cents per share interim dividend Toll's board declared today.
The Australian company's directors backed the deal, which would see Japan Post retain the Toll brand and management, using it as a division to lead its global aspirations to become one of the world's top five logistics companies. The acquisition needs 75 per cent shareholder approval and sign off from a number of regulatory bodies, including New Zealand's Overseas Investment Office.
Toll operates the TranzLink trucking and freight logistics operations in New Zealand, having bought what is now the state-owned KiwiRail from American investors who bought the rail service when it was privatised in the mid-1990s. It remains the biggest customer of state-owned KiwiRail.
The Australian logistics group separately reported a 22 per cent decline in first-half profit to A$136.6 million, including A$33.6 million of impairment charges. Sales slipped 2.6 per cent to A$4.41 billion.
