Deutsche Post DHL Group has reached an agreement on the terms of a recommended cash offer to acquire the entire issued and to be issued ordinary share capital of UK Mail Group plc (UK Mail). The move will strengthen the European market position of DHL Parcel, adding a commercial and operational presence, including pick-up and delivery capabilities, in the UK; Europe’s largest e-commerce market.
Jürgen Gerdes, the Head of Deutsche Post DHL Group’s Post – eCommerce – Parcel division, said: “The ongoing expansion of our parcel network in Europe is driven by increasing demand within our e-commerce customer base for cross-border deliveries. Deutsche Post DHL Group, as the leader in the German parcel market, has already established a strong position in a number of European countries. UK Mail is a well-run business and an established provider of quality delivery services in the UK and offers a complementary fit with our integrated offering. With this acquisition, we will further extend our network and have a strong foothold in Europe’s three largest e-commerce markets, the UK, Germany and France, which account for over 60% of online retail in the continent.”
Deutsche Post DHL Group’s cash offer of £4.40 per share values the entire issued and to be issued ordinary share capital of UK Mail at £242.7m, which represents a premium of 43.1 percent over the closing price per UK Mail share on 27 September, 2016. The Directors of UK Mail intend to make a unanimous recommendation that company shareholders accept the offer.
For further analysis and commentary please see Thomas Cullen’s brief, UK Mail purchase represents a strategic shift for Deutsche Post DHL
Source: Deutsche Post DHL Group