Deutsche Post DHL tables offer to acquire UK Mail

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Deutsche Post DHL Group has reached an initial cash agreement for the acquisition of post and parcel operator UK Mail Group. The acquisition will enable DHL to bring its expertise in e-commerce and parcel delivery together with UK Mail’s existing customer base and network, to drive substantial shareholder value.

Juergen Gerdes, board member of Deutsche Post DHL, 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’s cash offer of £4.40 (US$5.70) per share values the entire issued and to be issued ordinary share capital of UK Mail at £242.7m (US$315.8m), which represents a premium of 43.1% over the closing price per UK Mail share on September 27, 2016. The directors of UK Mail intend to make a unanimous recommendation that company shareholders accept the offer.

September 28, 2016

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Helen has worked for UKi Media & Events for nearly a decade. She joined the company as assistant editor on Passenger Terminal World and since progressed to become editor of five publications, covering everything from aviation, logistics and e-commerce to meteorology. She has a love for travel and property and has redeveloped three houses in three years. When she’s not editing magazines, she’s running around after her two boys and their partner in crime, Pete the pug.

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