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Under the deal, shareholders will receive 440 pence in cash for each share of UK Mail.
Deutsche Post, Europe's largest postal company, said that the proposal provides for a premium of about 43% to price of UK Mail shares at close of trading on September 27 (307.5 pence).
UK Mail’s management said the offer was "fair and reasonable". The company intends to recommend shareholders voting in favor of the deal, announced Deutsche Post.
"Through this acquisition we will further expand our network, and will occupy a strong position in three major markets of e-commerce in Europe - in the UK, Germany and France - which account for over 60% of online trade on the continent," - said Jürgen Gerdes, a board member of Deutsche Post.
The German company expects "significant synergies" from the deal with UK Mail.
"The Board of Directors believes that the UK Mail would benefit enormously from joining Deutsche Post DHL and get more opportunities to continue to develop the business of delivering letters and packages, given the fact that Deutsche Post DHL has greater financial and operational resources," - said Head of UK Mail Peter Kane.
Shares of Deutsche Post rose 0.3% on news that the German postal service takes on the British rival. Price of UK Mail securities soared by 43%.
Consolidated net profit of Deutsche Post DHL in the I half of 2016 amounted to 1.2 billion euro, which is 43.7% more than in the same period last year. Operating profit increased by 29.3%, and amounted to 1.6 bln. euro. At the same time, the group's revenue decreased by 4.8% to 28.1 billion euro.
Consolidated net profit of Deutsche Post DHL on results of the II quarter of 2016 amounted to 541 million euro, which is 66% more than the same period last year. Operating profit rose 40% to $ 752 million euro.
Group revenue for the period decreased by 6.1% and amounted to 13.9 billion euro. In addition to the currency factor and the effect of lower oil prices, the decline is linked to a change in accounting for revenue in the group’s logistics division, started in the IV quarter of last year. Adjusted revenue excluding these factors was 4.1% higher than a year earlier.
Sales of Post - eCommerce - Parcel (PeP) division increased by 7.8% to 4 billion euros; delivery of packages and internet shopping rose 14.2% to 1.7 billion euros, and the postal business climbed 3.6% to 2.33 billion euro.
Sales of the express delivery services division increased by 2% to 3.5 bln. euro.
Revenue of DGF, forwarding business of Deutsche Post DHL, decreased by 9.3% and amounted to 3.4 billion euro.
Revenue of the supply management segment decreased by 12.5% to 3.5 bln. euro.
source: reuters.com
Deutsche Post, Europe's largest postal company, said that the proposal provides for a premium of about 43% to price of UK Mail shares at close of trading on September 27 (307.5 pence).
UK Mail’s management said the offer was "fair and reasonable". The company intends to recommend shareholders voting in favor of the deal, announced Deutsche Post.
"Through this acquisition we will further expand our network, and will occupy a strong position in three major markets of e-commerce in Europe - in the UK, Germany and France - which account for over 60% of online trade on the continent," - said Jürgen Gerdes, a board member of Deutsche Post.
The German company expects "significant synergies" from the deal with UK Mail.
"The Board of Directors believes that the UK Mail would benefit enormously from joining Deutsche Post DHL and get more opportunities to continue to develop the business of delivering letters and packages, given the fact that Deutsche Post DHL has greater financial and operational resources," - said Head of UK Mail Peter Kane.
Shares of Deutsche Post rose 0.3% on news that the German postal service takes on the British rival. Price of UK Mail securities soared by 43%.
Consolidated net profit of Deutsche Post DHL in the I half of 2016 amounted to 1.2 billion euro, which is 43.7% more than in the same period last year. Operating profit increased by 29.3%, and amounted to 1.6 bln. euro. At the same time, the group's revenue decreased by 4.8% to 28.1 billion euro.
Consolidated net profit of Deutsche Post DHL on results of the II quarter of 2016 amounted to 541 million euro, which is 66% more than the same period last year. Operating profit rose 40% to $ 752 million euro.
Group revenue for the period decreased by 6.1% and amounted to 13.9 billion euro. In addition to the currency factor and the effect of lower oil prices, the decline is linked to a change in accounting for revenue in the group’s logistics division, started in the IV quarter of last year. Adjusted revenue excluding these factors was 4.1% higher than a year earlier.
Sales of Post - eCommerce - Parcel (PeP) division increased by 7.8% to 4 billion euros; delivery of packages and internet shopping rose 14.2% to 1.7 billion euros, and the postal business climbed 3.6% to 2.33 billion euro.
Sales of the express delivery services division increased by 2% to 3.5 bln. euro.
Revenue of DGF, forwarding business of Deutsche Post DHL, decreased by 9.3% and amounted to 3.4 billion euro.
Revenue of the supply management segment decreased by 12.5% to 3.5 bln. euro.
source: reuters.com
