DHL working on open offer for Blue Dart
Leading logistics firm DHL Express is planning to make an open offer to shareholders of domestic courier company Blue Dart.
By Nirbhay Kumar, TNN |
BONN: Leading logistics firm DHL Express is planning to make an open offer to shareholders of domestic courier company Blue Dart. DHL Express Singapore, a subsidiary of Bonn-headquartered DHL, already holds 81.03% in Blue Dart. The move is aimed at delisting Blue Dart from the Bombay Stock Exchange (BSE), making it a fully-owned subsidiary of DHL. Blue Dart shares closed at Rs 625 per share on the BSE on Friday, 1.75% lower than the previous closing.
���Making Blue Dart Express a 100% subsidiary would help us take decisions fast. It would also centralise activities of the company and bring it under the control of the core management. We tried to delist Blue Dart earlier, but the market condition at that time didn���t favour,��� DHL Express CEO John Mullen told ET.
���Blue Dart is one of the most profitable companies under Deutsche Post World Net (DPWN),��� he added. DPWN is the parent company which holds various units under mail, express, logistics and finance categories. Blue Dart operates with seven freighter aircraft in the domestic market and is expected to extend logistics operation to neighbouring countries such as Sri Lanka, Bangladesh, Pakistan, Singapore and Thailand.
Buoyed by the growth in the air cargo space, Blue Dart recorded a growth of 88% in net profit to Rs 30.7 crore in the first quarter ended March 31, ���08. The total income of the company grew at 31.9% to Rs 240 crore. DHL has plans to expand its operation in Asia through acquisitions in the range of $50-100 million.
Meanwhile, DHL is building a logistics hub in Shanghai with an investment of $175 million. The proposed hub, which would be developed on the line of its just-opened Leipzig hub in Germany, is scheduled to start operation in ���09.
���Building a hub in India is also in the pipeline, but it would take some time. India and China are important markets for us, as the two countries are leading the growth in Asia. We generate more than 22% of our revenue from Asia,��� Mr Mullen said.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
