Japan Post
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REUTERS reports:

Japan Post Holdings Co Ltd has decided to sell its Australian logistics arm Toll Holdings Ltd, a media report said on Tuesday.

In 2015, Japan Post acquired Australia’s transport logistics firm Toll (…), making an ambitious bet to diversify overseas. But two years after the deal, it had to write down the bulk of Toll’s value only two years after the deal due to its weak performance.

Japanese business magazine Diamond reported that Japan Post had started sounding out brokerage firms this week to find advisors for the sale of the troubled Australian firm, citing multiple unidentified sources.

Japan Post plans to pick two brokerages, one Japanese and one from overseas, by August, the magazine added.

A spokesman for Japan Post Holdings declined to comment on the media report.

Others: Earlier this week, ShippingWatch wrote: “Australian logistics group Toll has put growth in Asia on top of its agenda for the coming years, with the task handed to a former Maersk Asia CEO. The company was recently targeted as a potential acquisition, but the managing director denies that Toll is for sale.”

Reaction: All sorts of rumours are doing the rounds, with sources suggesting that a) net losses mounted in fiscal Q1 ’21 (ended 30 June), and that b) parts of the company would be easier to divest to a local rival, with Australia Post rumoured to be looking closely at how the situation develops. Express is one unit that is particularly struggling, sources indicate, in terms of cash-burn rates. Its fiscal 2020 results “are still some time off, but Q1 revenue and ebit should be only days away”, one source noted. More soon.

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