REPORTING SEASON: Toll Holdings (HOL)
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Figure 1: Toll Holdings 12 month chart
Toll Holdings Limited (TOL) accepts Japan Post co. takeover bid
The Australian based transport firm surprised the market by announcing a takeover bid from Tokyo based transport firm, Japan Post Co. Japan Post has offered $9.04 per share, which is 49% above TOL’s closing price on 17th of February 2015 of $6.08. The offer price represents an implied market capitalisation of $6,486 million.
The deal is subject to a Toll shareholders agreement and Australian court approval. Toll’s board “believes it’s a compelling transaction for shareholders”. Toll will hold a general meeting in May for shareholders to vote and if the takeover is accepted TOL expects the deal to be completed in June.
In a joint statement, Toll Holdings and Japan Post said “Toll will retain and grow its own brand and reinforce its domestic operation” and current management will stay in place. This takeover will enable Japan Post to grow as a comprehensive international logistics company.
TOL also released it 1H15 results and TOL said “market conditions have been weaker than anticipated impacting Australian network businesses”. TOL saw its profit slide by 22% over the half to $134.3 million. TOL’s result included $33.6 million of, previously announced, asset impairments and divestment charges.
Toll informed the market it has seen continued improvements in its Global Forwarding and Toll Global Express Japan units. Toll reaffirmed its FY15 guidance and said it will pay a $0.13 interim dividend to shareholders on 2 April 2015