TNT to Sell China Road Unit to Citic Private-Equity Fund
TNT Express NV (TNTE) agreed to sell its Hoau domestic road operations in China to private equity funds as the delivery company focuses on European business following the failure of a takeover by United Parcel Service Inc. (UPS)
The sale of Hoau for an undisclosed amount to funds managed by a Hong Kong-based affiliate of Citic Group Corp. is expected to close in the second half of the year, Hoofddorp, Netherlands- based TNT said in today a statement. Settlement of some of the deal will occur in 2014, it said.
TNT is reorganizing after Atlanta-based UPS, the world’s biggest package-delivery company, terminated a 5.16 billion-euro ($6.6 billion) bid in January, when European Union regulators signaled they would block the deal. TNT’s preparations for the disposal of Brazilian assets have begun as part of the turnaround plan, which also involves cutting 4,000 jobs.
“TNT Express will focus on offering the broadest range of international services to and from China,” where it maintains gateways abroad from Beijing, Shanghai, and Shenzhen, interim Chief Executive Officer Bernard Bot said in the statement.
Hoau was subject of a 75 million-euro writedown last year as the unit was marked for disposal. No further writedown is expected, TNT said today in an e-mail.
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