The joint venture will encompass all the current TNT Post UK operations, which includes the downstream access activities and will be led by the current TNT Post UK management team. The TNT Post UK ambitions for the roll out of the E2E network will be funded by LDC and RBS upon completion. This partnership will enable TNT Post UK to build its competitive position and continue to innovate the UK postal industry by providing choice and new and cost efficient services for customers.
Marcel Krom, PostNL Executive Committee member responsible for the international activities commented: "With this joint venture PostNL is able to maintain its strategy to be number 2 in the European markets in which it operates. The successful trials in London have shown that TNT Post UK can build a real, profitable alternative to Royal Mail, by meeting customer's demand for quality, innovative and cost effective services. PostNL is confident that the new combination will contribute to the positive development of a fast changing mail market."
PostNL will have a 40% stake in the joint venture. Under the new accounting rules for joint ventures, the financials of the UK activities will be equity accounted for after completion of the transaction (in the line "Investments in Joint Ventures and Associates"). Accordingly, the segment results of International will consist of Germany, Italy and Spring. The transaction is subject to a number of conditions, including approval by the European Commission and is expected to close early 2014. Further details will be provided at that time.
The deal was transacted by LDC's Reading team, led by Managing Director Yann Souillard and Investment Director Alex Clark. LDC and PostNL executed the transaction with support from a number of regionally based advisors, including Shoosmiths, Sullivan & Cromwell and HMT Corporate Finance.
PostNL is the inventive partner in the world of sending and receiving. We have been so for 200 years already. We are primarily active in the fields of mail, parcels and e-commerce, but we also offer services in the areas of data and document management, direct marketing and fulfilment. Outside the Netherlands, we are active in Germany, the United Kingdom, Italy, Belgium and Luxemburg. PostNL employs a total of more than 59,000 people. In 2013 our revenues reached € 4.3 billion.
We like to stay ahead of things. We are the most modern postal company in the world. We are proud of that. As the first listed postal company, we are an example to the rest of the world in automatic letter sorting. And our innovative parcels network is completely adapted to the wishes of web retailers.