TNT Express has completed the sale of its Chinese domestic road service, TNT Hoau, to private equity funds under the management of CITIC PE.
The transaction, which is subject to regulatory approvals, is expected to close in the second half of this year with a settlement occurring in 2014. Financial details were not disclosed.
TNT has not abandoned China and will instead focus on international express service from the country. The company will still staff 36 depots across the country and three hubs with about 3,000 employees. In September 2011, TNT Hoau linked with TNT's international Asia road network
to spread day-definite transportation across the region.
“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," the company's interim chief executive officer, Bernard Bot, said in a statement. "TNT Express will focus on offering the broadest range of international services to and from China.”
TNT has been looking for a new way forward since the European Union blocked UPS' proposed $6.6 billion acquisition of the company. TNT announced this week a restructuring plan, which included cutting 4,000 positions, selling its Brazilian and Chinese domestic networks and hitting a target of $283 million in cost savings by 2015. The company anticipates spending 150 million euros on the plan. As part of the new look at TNT, officials are planning to invest 200 million euros in automation and network optimization.
Shares of TNT Express were up by 2.14 percent Thursday morning. - Jon Ross