Japan Post to acquire Toll

In breaking news, Toll Group has announced that Japan Post is seeking to acquire the Australian supply chain giant, having offered a cash payment of $9.04 per share.

The offer represents a 49 per cent premium on Toll's closing price yesterday (February 17) and equates with an implied market capitalisation of nearly $6.5 billion.

Toll's Board describes the offer as a "compelling transaction" and has unanimously recommended to vote in favour of the acquisition. It has now entered into what it calls a 'Scheme Implementation Deed' to facilitate the process.

Toll shareholders will be asked to vote on the proposal in May 2015. Should the majority vote in favour of the scheme, it should be fully implemented by early June. The scheme will also have to gain court approval and the approval of the Treasurer of the Commonwealth of Australia, who will ensure it complies with Australia's foreign investment rules and other associated regulations.

In a media release Toll says that Japan Post has its sights set on becoming a leading global logistics provider, with Toll's acquisition being integral to the realisation of those ambitions.

Under the terms of the acquisition Toll will retain is name and act as a separate division of Japan Post. Toll's management team will also remain in place, with Toll Group CEO Brian Kruger (pictured) reporting directly to Japan Post.

Toll Chairman Ray Horsburgh said the acquisition would lead to the formation of a leading global logistics heavyweight.

"We are delighted to recommend to shareholders that Toll joins with Japan Post," he said.

"Japan Post is one of the world's leading postal and logistics companies and Toll is the largest independent logistics group in the Asia Pacific. Together, this will be a very powerful combination and one of the world's top five logistics companies."

Toll CEO Brian Kruger said the deal represented a great opportunity.

"The proposed combination is a reflection of the strategic value of our business and our strong footprint throughout the Asia Pacific region," he said.

"It will deliver great opportunities for our staff, customers and strategic partners. The great Toll culture built on safety and operational excellence will work well alongside Japan Post's established values."

The President and CEO of Japan Post, Toru Takahashi, said the acquisition would take both his company and Toll to greater heights.

"We believe the combination of Japan Post and Toll will be a transformational transaction for both our companies and we are very pleased we have been able to reach agreement," he said.

"In partnership with Toll we are starting a new chapter of looking outward and becoming a leading global player."