Toll takeover continues to stir up market

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Prime Mover Magazine / February 19, 2015

Japan Post’s proposal to take over Toll continues to make headlines in Australia and around the globe.

Toll chairman Ray Horsburgh noted on Thursday that the bid would enhance the transport company’s ambitions in the fast growing business-to-consumer market in Australia, which is currently dominated by Australia Post.

In reaction, Japan Post’s Toru Takahashi said the real prize for his company was Toll’s skill base and its footprint in Asia.

“Within Japan Post the domestic business of Toll in Australia has not been an important focus. Rather we have been focussed on leveraging Toll to expand our business in Asia Pacific,’’ Mr Takahashi told The Australian.

Following the announcement of the deal, Australian shares soared on Wednesday, breaking through the 5900 mark for the first time since May 2008.

Toll shares closed up a staggering 51.2 per cent to $8.95 on the news, easily eclipsing the transport company's 22 per cent fall in half year net profit reported on the same day.

In reporting on the proposal, the Sydney Morning Herald also unveiled that the deal would give former Toll boss Paul Little a windfall of some $340 million.

Even though Mr Little confirmed that he had never been approached by Japan Post during his time as CEO of the group, the deal is seen as an endorsement of his acquisition strategy, which while heavily criticised in recent years, has delivered Toll the Asian footprint which Japan Post is now keen to access.

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