TNT sells domestic services in China
TNT Express announced the sale of its domestic road operations in China today, following an initiative byt the company to explore partnership opportunities for its domestic activities in China.
According to a statement released by TNT, the company has sold its operations in China (Hoau) to private equity funds, under the management of CITIC PE.
Hoau is one of China's leading domestic road distribution service providers and a leader in day-definite delivery services. It operates an extensive domestic road distribution network with about 1,500 depots, covering more than 600 cities.
The transaction and the subsequent settlements are subject to regulatory approvals. It is expected to close in the second half of 2013 with settlement of part of the purchase price to be cleared in 2014.
After completion of the transaction, TNT Express will continue to develop its international express delivery service to and from China. TNT International Express has 3,000 employees and a network of 36 depots across mainland China and 3 international gateways in Beijing, Shanghai, and Shenzhen. Building on twenty years of quality service and commitment to customers, TNT Express remains a leading international express delivery service provider in China.
Commenting on the transaction, TNT Express interim CEO Bernard Bot said: "In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company. TNT Express will focus on offering the broadest range of international services to and from China."