Press Release


TNT confirms position on net proceeds at completion from sale of logistics activities

Publish Date : 28 August 2006 at 08:20 CET - Amsterdam, In reaction to press coverage, TNT confirms the expected net proceeds of the announced sale of its logistics activities to lie between € 1.2 billion and € 1.3 billion at completion. A further description on the basis of what has been stated and explained on announcement is summarised below:

The transaction value of the sale is € 1,480 million, on a cash and debt free basis, of which € 15 million will be received in the form of a 5% equity stake in the new company. The estimated net proceeds to be received by TNT at completion are in the range of € 1.2 billion - € 1.3 billion.

The difference between the expected net proceeds and the total transaction value reflects deductions by the buyer for finance leases, pension and other employee liabilities, and various costs for separation and re-branding, leading to payment at completion of around € 1.3 billion. TNT currently expects to incur various other deal related expenses (including tax) of up to € 100 million, bringing the estimated net proceeds in the range € 1.2 billion to € 1.3 billion.

The external group facility of around € 220 million, disclosed in TNT's 2005 annual report as a current loan, allocated to TNT Logistics Canada, will expire and will be redeemed by TNT before completion. The estimated € 1.2 billion to € 1.3 billion net proceeds are therefore freely available to TNT for allocation after completion, including the announced share repurchase of up to € 1 billion.

The estimated book result on the transaction at completion is expected to be close to neutral, before the various other deal related costs. Note that all figures can only be calculated definitively after completion, based on completion accounts including provisions, as is customary in transactions of this size.

TNT N.V. provides businesses and consumers worldwide with an extensive range of services for their mail and express delivery needs. Headquartered in the Netherlands, TNT offers efficient network infrastructures in Europe and Asia and is expanding operations worldwide to maximize its network performance. TNT serves more than 200 countries and employs over 128,000 people. In the first half of 2006, TNT reported € 5.3 billion in revenues and 671 million EBIT from continuing operations. TNT N.V. is publicly listed on the stock exchanges of Amsterdam and New York. TNT recognizes its social responsibility, and has formed partnerships with the United Nations World Food Programme and the United Nations Environmental Programme to fight hunger and pollution in the world.

Page publication date: 28 August 2006 at 08:20 CET