Toll deal inches closer

The Australian Government's Foreign Investment Review Board (FIRB) has formally announced that it has no objections to the acquisition by Japan Post of 100 per cent of Toll Group, as reported by trucksales.com.au on February 18.

Toll Group has welcomed the news, which takes the deal one step closer to fruition and is one of several approvals required for its go-ahead.

Toll Chairman, Ray Horsburgh, expressed his pleasure at the FIRB notification.

"We are pleased that Japan Post's bid has gained FIRB approval," he said, in a press statement.

"The offer is compelling for Toll's shareholders and this is an exciting time for Toll and its employees.

"While there are still a number of approvals to obtain, including the vote by our shareholders at an EGM in May, we look forward to a successful and speedy conclusion to the transaction.

"In the meantime, it is business as usual for Toll as we focus on delivering the best possible logistics solutions for our customers."

Should the necessary other approvals be gained and the majority of shareholders vote in favour of the acquisition in May, the deal is expected to be finalised by early June.

In February Japan Post offered a cash payment of $9.04 per share for Toll Group, equating to an implied market capitalisation of nearly $6.5 billion. At the time the offer signified an attractive 49 per cent premium on Toll's share price.

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 reporting directly to Japan Post.