Toll Group

The Australian Financial Review reports:

Japan Post is progressing plans to end its time at Toll Holdings.

Only months after it called in investment bankers to pitch their ideas for the business (which had Nomura mandated), Street Talk understands Japan Post has upped the ante by putting together a full deal team to run what could be a complex sale.

While Japan Post puts together a team to take Toll Holdings to market, bankers are running around trying to find a buyer.  

Nomura, having done the early work, is riding shotgun, while Japan Post has been in the market interviewing accounting firms for the big role of vendor due diligence.

It’s expected to tap one of the big four firms to go over the company’s books and give their seal of approval – before suitors get to look at the numbers.

Vendor due diligence is likely to play a big role in the sale. Toll has been an extremely tough investment for Japan Post and it is expected that what’s put to potential buyers could be a materially smaller version of the logistics company than Japan Post bought for $8 billion five years ago.

Tyrekickers will be looking for nasty surprises – and it’ll be the accounting firm’s job to find them first.

Meanwhile, investment bankers are running around the market seeking to find value-conscious bidders who could roll up their sleeves and seek to turn around Toll’s fortunes.

Their attention is on big offshore strategic buyers – think European and US transport and logistics providers who may be tempted with a chunky Asia Pacific acquisition – and private equity firms, who cannot resist a potential bargain.

To read the full post, please click here.

Meanwhile, we hear a piecemeal deal for Toll’s parts is more likely to materialise over the course of 2020 than a full-fledged sale of the ailing group, while some units may be discontinued. Stay tuned. More soon on Premium.

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