Breaking News

Tweet TWEET

TNT Express Falls After PostNL Sells Half of Its Stake

PostNL NV (PNL), the Dutch mail service, said it sold about half of its 29.8 percent stake in TNT Express NV (TNTE) to reduce debt, sending the shares of the package-delivery service to the lowest in more than four months.

TNT Express fell as much as 0.38 euros, or 5.7 percent, to 6.23 euros in Amsterdam. That’s the steepest intra-day decline since July 29. They fell 3.9 percent at 6.35 euros at 9.19 a.m., valuing the Hoofddorp-based company at 3.46 billion euros.

“The transaction is a further step in safeguarding a sustainable future for PostNL,” The Hague-based company said late yesterday. The 15 percent holding was sold at 6.20 euro a share, resulting in gross cash proceeds of 507 million euros ($692 million) for PostNL and leaving it with a stake of 14.8 percent in TNT Express, the company said in a statement today.

TNT is selling units in China and Brazil and may divest parts of its fashion logistics business after United Parcel Service Inc. (UPS), the industry’s No. 1, in January dropped plans to buy TNT for 5.16 billion euros amid opposition from European Union regulators.

PostNL sold the shares through a private placement to institutional investors. The company got the stake following the split of TNT Express from TNT in May 2011. The shares were offered at 6.15 euros to 6.20 euros each, two people familiar with the matter said late yesterday.

Deutsche Bank AG (DBK) and Goldman Sachs Group Inc. were book runners in the process, with ING Groep NV (INGA) and Rabobank International acting as co-lead managers, PostNL said.

To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.