On Wednesday, more than 95 per cent of Toll Holdings (ASX:TOL) shareholders voted in favour of Japan Post’s $6.5bn takeover of the company. Toll shareholders are to be paid $9.04 per share on the 28 May, which is slightly above the current suspended trading price of $9.02 per share. When Japan Post made the offer in February, TOL was trading around $6.08 per share. The offer made by the Japanese company came at a 49 per cent premium.
The meeting to vote on the deal took less than 20 minutes to conduct. Because the Australian company is based in Melbourne, the deal required court approval first. On Thursday, the Supreme Court of Victoria quickly gave its approval for the deal. Toll will now be delisted from the Australian share market at the close of trading on Thursday. After the acquisition is complete, the company will be called Toll Group. The takeover bid was part of an ongoing discussion amongst Japanese investors who wish to see Australia take a more active and focused role in the broader Asian economy.
Managing Director Brian Kruger thanked shareholders for supporting the company throughout its 22-year listing on the ASX. “Your support since the company floated back in 1993 has enabled us to expand and grow significantly and has helped make Toll into the truly global logistics company it is today.” Shares of the transportation and logistics company peaked in July 2007 before falling significantly during the global financial crisis. After the proposed deal, shares of TOL jumped around 50 per cent. Previously, TOL had advanced 65.69 per cent in the last 12 months and 53.31 per cent so far in the year.
Author: Simon Herrmann
May 14, 2015
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.