Bloomberg News

TNT to Sell China Road Unit to Citic Private-Equity Fund

March 28, 2013

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:US)

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.

To contact the reporter on this story: Robert Wall in London at rwall6@bloomberg.net

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


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • UPS
    (United Parcel Service Inc)
    • $102.53 USD
    • 0.44
    • 0.43%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus