Austrian Post reaches deal for 25% in Aras Kargo.
M2 EQUITYBITES-June 21, 2013-Austrian Post reaches deal for 25% in Aras Kargo(C)2013 M2 COMMUNICATIONS http://www.m2.com
21 June 2013 - Mail delivery services provider Austrian Post AG said on Friday it had agreed to take 25% in Turkish cargo freight company Aras Kargo AS for TRY125m (USD64.5m/EUR49m) and step into the Turkish market.
The agreement was reached with Is Private Equity and the Aras family, the buyer said, adding it would buy 20% in Aras Kargo from the Turkish private equity firm and the other 5% from the Aras family.
Following the deal, the Aras family will hold 75% in the cargo freight firm. Under a call option that can be exercised in 2016, Austrian Post could buy further 50% in Aras Kargo from the Aras family, based on the firm's business results for the year 2015/16, and take its holding to 75%, the buyer said.
The deal gives Austrian Post a presence in Turkey, allowing it to further expand internationally and continue growth, it said.
Commenting on the transaction, Aras Kargo's CEO Evrim Aras expressed confidence that Austrian Post will use its expertise to back his company's efforts to enhance market position.
Aras Kargo, with EUR250m in annual revenues, currently holds more than 25% of the Turkish sector market. It delivers some 46m parcels and 32m documents a year.
Completion is subject to regulatory approvals.Austrian Post announced exclusive talks over a deal in April.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jun 21, 2013|
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