Dutch firm TNT is to sell its underperforming logistics business to US-based private equity fund Apollo Management for €1.48 billion, it said today.
The deal is valued on a cash and debt-free basis, and TNT will receive €15 million euros of the proceeds in the form of a 5 per cent equity stake in the new company.
"This transaction is an important milestone ... and will enable us to fully focus on growing our core network business," TNT Chief Executive Martin Bakker said in a statement.
TNT said it expected to return most of the deal's net proceeds, which the company estimates to be between €1.2 billion and €1.3 billion, to shareholders via a share buyback programme of up to €1 billion. After trading slightly higher this morning TNT shares were down 0.5 per cent at €29.02 by 1145 GMT.
TNT announced in December its intention to sell its logistics activities to concentrate on mail and express delivery, which represent about a quarter of group revenue.
The Dutch firm had expected make a profit on the sale and close it in the second half of the year.
TNT said that one of its management board directors, Dave Kulik, will resign and become CEO of the new company.