Deutsche Post World Net To Take Majority In DHL
Deutsche Post World Net to Increase Stake And To Take Majority In DHL International
- Strategic Reinforcement Prior To Deutsche Post Group's IPO -
Deutsche Post (DPWN) and DHL International announced that DPWN is poised to increase its stake in the express service provider DHL International to 51 per cent in January 2001. This was announced by the Chairmen of both companies, Dr. Klaus Zumwinkel (DPWN) and Patrick Lupo (DHL International) in Paris on 15th September.
This step will greatly strengthen the market position and growth prospects of the global logistics Group DPWN in the run-up to the company's IPO in November.
Following the completion of the transaction, DPWN will hold a 51 per cent stake in DHL International, the pioneer and market leader of the global air express industry. DHL has an international network linking more than 80,000 destinations serving 635,000 cities in 228 countries and employing over 64,000 people. DHL International, headquartered in Brussels, generated revenues of approximately 4.0 bn Euro in 1999.
The move will enable the two groups to offer complementary logistics and air-express services and gives customers easier access to the full capabilities of both companies.
Dr. Klaus Zumwinkel, Chairman of Deutsche Post World Net, underlined the importance of the transaction for the Group's forthcoming IPO: "DHL founded the global express industry and is considered to be the gem of the entire industry. The services provided by DPWN and DHL complement each other and we will be able to provide our international customers with market leading services in the global express business in future. With DHL, the growth and earning prospects of Deutsche Post World Net will be considerably enhanced."
DHL will continue to operate as an independent company under its globally recognised brand. The present management structure will be maintained. The DHL brand is very well established worldwide and will continue to be expanded. The previously announced plans to float part of DHL in 2002 are still on course. Patrick Lupo, Executive Chairman DHL International said: "The step taken by DPWN is confirmation of our strong growth prospects. It will provide us with enhanced access to capital and enable us to further develop our infrastructure.
"There is a growing demand among our customer base for integrated logistic solutions. By broadening our respective service portfolios, both groups' customers will benefit from easier access to an increased range of complementary services."
The transaction is expected to close early in 2001 subject to Board and regulatory approvals.
This transaction, due to its scale and strategic importance, must be included accordingly in the Deutsche Post IPO prospectus. Consequently the planned date for the IPO will be the 20th November.
DHL Worldwide Express is the pioneer and market leader of the global air express industry with an international network linking more than 80,000 destinations serving 635,000 cities in 228 countries and territories and employing over 64,000 people. DHL Worldwide Express is composed of DHL Airways Inc, which serves all locations in the U.S. and its territories; and DHL International Ltd and its agents and affiliated companies, which serve all locations outside the U.S. and its territories.
DHL's shareholders are Lufthansa Cargo AG, Deutsche Post AG, Japan Airlines Company Ltd and the original founders of the company.
In New Zealand DHL has dominated the air express industry for over 25 years. More information regarding DHL's products and services can be found at http:/www.dhl.co.nz.
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Released on behalf of DHL Worldwide Express by Porter Novelli New Zealand (Auckland). For further information please contact:
Harlis Malkic DHL New Zealand 09 636 7124 or Carolyn Wellburn Porter Novelli New Zealand (Auckland) 09 373 3786
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